Wealth Creation: Outlook for the agricultural sector into 2021
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Paul Makube, FNB Senior Agricultural Economist
Against the backdrop of a contracting overall economy with South Africa’s gross domestic product (GDP) for 2020 forecast to decline by over 8% year-on-year (y/y), there is a silver lining in the agricultural sector outcomes for the next season. Following two consecutive quarters of stellar performance by the agriculture sector with 28.6% and 15% quarter-on-quarter (q/q) seasonally adjusted annualised growth, we expect a similar feat in the remaining quarters of 2020 due to a combination of a good crop harvest, strong agriculture exports and the unseasonably high commodity prices.
Against the backdrop of a contracting overall economy with South Africa’s gross domestic product (GDP) for 2020 forecast to decline by over 8% year-on-year (y/y), there is a silver lining in the agricultural sector outcomes for the next season. Following two consecutive quarters of stellar performance by the agriculture sector with 28.6% and 15% quarter-on-quarter (q/q) seasonally adjusted annualised growth, we expect a similar feat in the remaining quarters of 2020 due to a combination of a good crop harvest, strong agriculture exports and the unseasonably high commodity prices.
