ISAAH MHLANGA: Chronic pre-existing conditions in economy are big part of SA’s huge contraction
There is simply no noticeable evidence that countries that opened up their economies faster recorded milder contractions
In the second quarter of 2007, just before the global financial crisis set in, SA’s real GDP was R2.6-trillion, aided by the commodity boom of the previous seven years, which added R597bn to the R2-trillion GDP from the end of 2001.
From the second quarter of 2007, through the recession inflicted by the global financial crisis to the subsequent infrastructure investment associated with the 2010 Soccer World Cup and the roughly R1-trillion debt accumulated post GFC, the economy grew by R524bn to the end of the first quarter of 2020. ..