Cosatu: Poor economic growth a reflection of govt, businesses’ slow pace

Stats SA announced today that South Africa’s economy grew by just 1.1% in the first three months of this year.

FILE: While the first-quarter GDP figures reflect the third successive quarter of positive growth, Stats SA said the economy was still 2.7% smaller than it was in the fourth quarter of 2020. Picture: 123rf.com.

CAPE TOWN - Cosatu on Tuesday said poor economic growth figures reflected the slow pace with which both the government and business were moving to meet their commitments under the economic recovery and reconstruction plan.

Stats SA announced earlier on Tuesday that South Africa’s economy grew by just 1.1% in the first three months of this year.

While the first-quarter GDP figures reflect the third successive quarter of positive growth, Stats SA said the economy was still 2.7% smaller than it was in the fourth quarter of 2020.

In a statement, Cosatu said every bit of relief was needed for struggling consumers and businesses and that the Reserve Bank needed “to move from its hawkish comfort zone” and reduce the repo rate by at least 50 basis points.

Cosatu said banks also needed to come to the party and help ease exorbitant lending rates.

It said the private sector continued to use delaying tactics when it came to local procurement, while ongoing problems at Eskom and power cuts were continuing to cost the economy.

Cosatu said efforts to clean up Eskom, ramp up maintenance and invest in new generation capacity needed to be sped up as a matter of urgency.

Download the Eyewitness News app to your iOS or Android device.