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South Africa's gross domestic product (GDP) contracted by 51 per cent in the second quarter of 2020, worsening the recession in Africa's second largest economy. According to data released on Tuesday by Statistics South Africa, the decline in economic output in Q2 2020 was the fourth consecutive quarterly contraction and the deepest on record.

The sharp decline in GDP was due to the economic impact of the lockdowns put in place by the government to curb the spread of COVID-19. South Africa accounts for nearly half of the COVID-19 caseloads in Africa, recording nearly 640,000 infections and 15,004 deaths as of Tuesday. Globally, the country accounts for the seventh largest number of cases after United States, India, Brazil, Russia, Peru and Colombia.

“This is the first time in history that the South African economy has contracted for four straight quarters,” Statistician-General, Risenga Maluleke, said during a news conference. The South African economy had contracted by 2 per cent in Q1 of 2020, following a contraction of 1.4 per cent and 0.8 per cent in the fourth and third quarters of 2019, respectively.

The latest GDP figures exceed the expectations of analysts polled by Reuters who, according to the news agency, predicted a 47.3 per cent contraction in the quarter due to strict lockdowns.

The construction sector recorded the biggest decline, at 76.6 per cent, followed by manufacturing at 74.9 per cent and mining at 73.1 per cent. Agriculture was the only sector that expanded, with 15.1 per cent growth, according to Stats SA.

The International Monetary Fund (IMF) has estimated that the South African economy would grow by –8.0 per cent this year, owing to the severe economic impact of COVID-19. Meanwhile, the South African government expects a GDP decline of at least 7 per cent in 2020.