President Cyril Ramaphosa says that the 13.5% rebound in GDP during the third quarter of 2020 (or 66.1% on an annualised basis) shows that a strong economic recovery is possible, even as the economy remains below its pre-pandemic levels.

1. MEDIA STATEMENT
TO ALL MEDIA/NEWS EDITORS
08 DECEMBER 2020
PRESIDENT CALLS FOR MOMENTUM OF ECONOMIC RECOVERY TO BE SUSTAINED AFTER
ENCOURAGING GDP GROWTH IN Q3 2020
President Cyril Ramaphosa says that the 13.5% rebound in GDP during the third quarter of 2020 (or
66.1% on an annualised basis) shows that a strong economic recovery is possible, even as the
economy remains below its pre-pandemic levels.
GDP growth in the third quarter surpassed even the most optimistic market expectations, with a
surprisingly swift increase in economic activity as most restrictions designed to contain the spread of
COVID-19 were lifted. Gross fixed capital formation also increased at a rate of 26.5%. While GDP
contracted 6% year-on-year, the strong increase from the second quarter suggests that the economy
is recovering more quickly than expected.
In recent months, encouraging green shoots have emerged which provide a foundation for economic
reconstruction and recovery. The mining and agriculture sectors in particular have demonstrated
robust growth in the context of favourable market conditions. As a result of large trade surpluses, a
record current account surplus is anticipated.
Fast-growing sectors such as Global Business Services have continued to expand and create
employment at a rapid pace, showing new areas of potential for future growth.
The swift rebound in the third quarter was supported by the tickle-up stimulus effects of the
emergency relief package announced by the President in April 2020, which has included direct
payments to over 22 million South Africans through additional grant payments, the Special COVID-19
Grant and the COVID-19 Temporary Employer/Employee Relief Scheme.
In addition, a strong recovery in economic activity was made possible by the country’s success in
bringing the virus under control.

2. The President said: “The strong rebound in GDP growth for the third quarter provides support for
the approach that we have taken both to confront the pandemic and to protect the economy. Our
task now is to ensure that this momentum is sustained, to enable a full recovery of the economy.”
A resurgence of the virus is now the single most serious threat to the economic recovery that is
underway.
As we move into celebrating the festive season and spending time with our families, we must remain
vigilant to prevent a second wave. The President calls on all South Africans to wear a mask, keep a
safe distance from others, avoid crowded or poorly ventilated spaces and wash hands regularly.
These simple measures are necessary not only to protect ourselves and others, but to support the
continued recovery of the economy.
Media enquiries: Tyrone Seale, Acting Spokesperson to the President