SA economy not in recession, says Ramaphosa
ANC President Cyril Ramaphosa says South Africa has been able to overcome its economic challenges before, and this time would be no different.
Ramaphosa has been addressing professionals in Pietermaritzburg as a part of the ruling party’s “Thuma Mina” campaign.
This week it was announced that the country’s economy had slid into a technical recession after the gross domestic product (GDP) contracted by 0.7% in the second quarter.
Ramaphosa has told the professionals that the government intends to respond to the current state of the economy.
#ThumaMinaKZN Some of the professionals here are telling the president that the ANC has failed to appoint the right people in the correct positions especially in municipalities. ZN pic.twitter.com/Ru1dkeZd59— EWN Reporter (@ewnreporter) September 8, 2018
Ramaphosa says South Africa has been able to overcome its economic challenges before, and this time would be no different.
“We’re facing what people are saying is a technical recession, and it’s largely due to the performance of agriculture. Agriculture did not perform as highly as we’d thought, and some people are saying it’s largely because of the late rains and harvest.”
Ramaphosa says job creation and youth unemployment remain a top priority for the government.
“[And] I’m saying we should not be fearful and think that we’re in a recession... we’re not, this is going to be corrected. I have no doubt about it.”
The president says in the coming days the government will be giving an outline on how it plans to tackle the latest economic crisis.
#ThumaMinaKZN Ramaphosa: smart governments are those that respond. In the coming days we will be issuing a statement on how we plan to respond to this (technical recession) because we are a responsive government. ZN— EWN Reporter (@ewnreporter) September 8, 2018
WATCH: What the recession technically means
The government has another mammoth task on its hands trying to dig the country out of yet another technical recession.
Stats South Africa revealed on Tuesday that GDP figures for the second quarter of the year showed a contraction of 0,7%.
To make matters worse, the figure for the first quarter has been revised to a contraction of 2,6%.
Economists say there are still several factors that the government is grappling with.
Xhanti Payi, an economist at Nascence Advisory, says the government still has a few areas it needs to concentrate on, including limiting expenditure.
The South African #economy slipped into a #Recession as economic activity declined by 0,7% in Q2:2018 q/q after a 2,6% decline in Q1:2018 #StatsSA #GDP https://t.co/KjOdmHB0yN pic.twitter.com/aBnPccETmP— Stats SA (@StatsSA) September 4, 2018
Additional reporting by Ray White.
(Edited by Zamangwane Shange)