MEC for Finance, Gadija Brown, says some of the key sectors in the economy of the province experienced this decline due to the global pandemic which had dire effects in the already strained economy of the country.

She says while some of the sectors in the province experienced a decline, the Agricultural sector, which was one of the few allowed to operate under the hard national lockdown, performed much better and recorded an increase of 4.3%.

Brown has also highlighted some of the sectors which were badly affected by the lockdown and as a result recorded shrinkages. 

According to Brown, the mining sector shrunk by a whopping 19.2 %, manufacturing declined by 9.5%, electricity by 6.0%, with the worst-hit construction sector which recorded a decline of 24.1%, trade declined by 9.8%, transport by 10.0%, finance by 3.3%, and community services by 8.5%. 

Brown was speaking at an event at the Gariep Dam to commemorate International Disability Month.

“Next year we are looking at growth rates of 2.2% total GDP but in the outer years, it’s going to stabilise based on the fact that we are looking at previous years and baseline figures. In 2022 we're looking at an increase of 0,7% growth, 2023 we are looking at 0,6% growth and in 2024 by 1,1% growth. Your challenging sector, however, is definitely mining. You will find that in the year 2022 and 2023 the sector will still shrink at -5,5% and in 2024 by -4,2%. Electricity will also have shrinkages, as well as community services, but the rest will see positive growth,” she adds.  

Meanwhile, last month during Brown’s 2020/21 Adjustment Budget in the Free State Provincial Legislature, she expressed concern at the increasing unemployment rate in the province.

OFM News’ Katleho Morapela reported that Brown said it is extremely concerning that an estimated 33 000 jobs have been lost in the province between April and September this year alone. This, as the province’s unemployment rate increased to 35.5% in the 3rd quarter in 2020, compared to 34.5% in the same quarter of 2019. Brown said it is further concerning that unemployment remains highest amongst the youth aged between 15 and 34 years of age.

OFM News