Govt to look at infrastructure programmes to curb recession
Stats SA announced that SA's GDP is at 1% year-on-year but added that a 0.7% quarter-on-quarter decrease meant the country entered a technical recession.
CAPE TOWN – Economic Development Minister Ebrahim Patel says the government wants to spend more on infrastructure programmes to get out of the recession.
Stats SA last week announced that South Africa's GDP growth rate is at 1% on a year-on-year basis but added a 0.7% quarter-on-quarter decrease meant the country entered a technical recession.
Addressing the South African Local Government Association's Council of Mayors in Cape Town, Patel told mayors based on the country's economic modelling it should have gone into depression in 2015.
He indicates this was due to a decline in global demand for platinum, iron ore and coal.
Patel says the country was able to stay above the water for the last two years because of infrastructure projects.
“We now have new challenges and a new environment and we are looking, at Cabinet level, to boost infrastructure development further as on lever to ensure that the recession is of the shortest duration and we get back to growing the economy as inclusively as possible.”
LISTEN: What impact will the recession have on you?