Expect 3.7% bounce back in GDP next year – BER

South Africa’s Bureau for Economic Research (BER) has found that Final Household Consumption Expenditure has decreased by 7.9% for the year.

The country’s Gross Domestic Product (GDP) for 2020 has also been measured to be in decline by 8.2%.

However, according to the BER’s findings, the country’s GDP performance is expected to bounce back in 2021 by 3.7%.

This is in line with economist Mike Schussler’s estimate that fairly steep growth will be achieved in the first quarter of the new year.

It should be remembered however that the overall economic devastation of the past year will still be eroding yields as overall depreciation lagged into 2021, Schussler explained.

The BER also found that the Consumer Price Index would be about 4.2% in 2021.