With the country still reeling from yesterday’s announcement by Stats SA of catastrophic GDP numbers for Q2, the agriculture industry was the only sector to post positive results, says Christo van der Rheede, deputy executive director of Agri SA.
According to Stats SA, due to increased production of field crops and horticultural and animal products, the sector expanded by 15.1%. “It was the only positive contributor, contributing 0.3 percentage points to GDP during the second quarter of 2020,” says Van der Rheede.
GDP declined 51% in the second quarter, the fourth consecutive contraction since the second quarter of 2019.
While the punitive lockdown restrictions crippled many industries, as an essential service the agricultural sector was able to continue operating.
AgriSA has however called for politicians to provide greater policy certainty for an industry that plays such a vital role in the economy.
“They have used all types of political rhetoric which creates uncertainty and further detracts from the country’s ability to grow economically. Policy certainty will contribute to further economic growth and could help to develop the potential of the sector.”