JOHANNESBURG, 8 SEPTEMBER 2020 – As expected, the countrywide lockdown to fight the spread of COVID-19 from 27 March 2020 severely affected economic activity in the second quarter as real output contracted, plunging the economy deeper into depression, Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Chief Economist Dr Michael Ade said today.
“The impact of the nationwide economic shutdown is visible in the numbers as there was virtually no economic activity in April, spanning lockdown alert level 5. Many companies, including the large entities, were not ready for the sudden shock that impacted negatively on supply chains and on global demand and exports,” Dr Ade said.