Real Gross Domestic Product (GDP) and Growth Rates
South Africa’ s Gross Domestic Product (GDP) increased at an annualised rate of 66,1% in the third quarter (July to September) of 2020 when compared to the previous quarter (April to June) of 2020. The agriculture, forestry and fishing industry increased at a rate of 18.5%, and contributed 0.6 of percentage points. The increase was mainly due to increased production of field crops and horticultural and animal products.
Crude Oil and the Exchange Rate
With much of the world in lockdown as the coronavirus (COVID-19) pandemic rages on, demand for oil has drastically declined due to low business activities and less travelling, thereby reducing the need for jet fuel and gasoline. In October 2020, the price of crude oil and the exchange rate reached levels of US$39.90/barrel and R16.46/$, respectively as compared to US$41.95/barrel of crude oil and R16.71 of the exchange rate in September 2020.
• Average Prime Interest Rate
The prime interest rate is currently 24.3% lower than during November 2014. The prime interest rate reached a peak of 10.5% during the period March 2016 to June 2017. The prime interest rate remains at 7.0% in November 2020.