2. An overview performance of the South African economy The global economic recovery has seen a divergence in prospects, with economic growth forecasts for emerging markets and developing economies lowered, while those for advanced economies have been revised up. Nearly 40% of the population in advanced economies has been fully vaccinated, with less than half that number in emerging market
economies. South Africa is lagging behind its emerging market peers: by the end of July, the country had fully vaccinated only 4.8% of the population (2.8 million adults). The drive towards more vaccinations is imperative for further opening up of the domestic economy and industrial activity.
2.1 Gross Domestic Product growth rates to first quarter of 2021 Gross Domestic Product (GDP) data released by Stats SA for the second quarter affirmed an uptick in economic growth in the second quarter of 2021. According to Stats SA, real gross domestic product (measured by production) increased by 1.2% in the
second quarter of 2021, following an increase of 1.0% in the first quarter of 2021. Second-quarter growth was mainly attributed to six sectors recording positive growth between the first quarter and second quarter of 2021.
Figure 3: Trends in South African GDP growth rate to 2021 Q1
Source: Stats SA
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State of the Metals & Engineering Sector Report - First half of 2021 review 2021-22
