South Africa's GDP plunges over 50% as COVID-19's 'punch in the gut' triggers the steepest decline since 1960

• South Africa's gross domestic product contracted by an annualized 51% in the second quarter of 2020, its fourth consecutive economic decline recorded.
• Restrictions to curb the impact of COVID-19 implemented from March onwards led to a "punch in the gut" for Africa's second largest economy, and severely impacted growth in nearly all industries.
• Construction, manufacturing, and mining were some of the worst-affected sectors, while agriculture was the only industry that expanded in the second quarter.
• The economy's significant contraction was worse than the central bank's 40.1% contraction and sharply contrasts with the 6.1% slowdown recorded in the first quarter after the 2009 global financial crisis.
• Visit Business Insider's homepage for more stories.

South Africa's recession has worsened as economic output for the second quarter of 2020 shrank by an annualized 51% — the economy's steepest contraction since 1960.

Data released on Tuesday by Statistics South Africa showed recession extending to a fourth quarter as the economy suffered a "punch in the gut" in the three months to June when pandemic-related restrictions came into force.

"Perhaps the second quarter of 2020 will become known as the pandemic quarter," the national statistics service said.

The contraction in economic growth, which is worse than the central bank's 40.1% estimate, stands in sharp contrast to the 6.1% annualized slowdown recorded in the first quarter succeeding the 2009 global financial crisis. According to Trading Economics, South Africa fared worse than any developed or major emerging economy in the second quarter of the year.

Read more: Bank of America lays out the under-the-radar indicators showing that huge swaths of the stock market are 'running on fumes' — and warns a September meltdown may just be getting started

A strict national lockdown that began on March 27 pushed the country into economic decline when nearly all industries experienced a massive drop in output. Already in bad shape prior to the pandemic, the construction sector was the "biggest loser."

Agriculture was the only industry that expanded in the second quarter, as rising international demand for citrus fruits and pecan nuts helped generate a 15% growth for the sector.

South Africa's stagnant economy and a second-year recession run has left the state in its weakest position since the start of the 1994 African National Congress rule.

The South African rand traded over 1% weaker against the dollar on Tuesday.

Read more: GOLDMAN SACHS: Buy these 19 stocks right now for big future gains once a COVID-19 vaccine is available