NEWS & ANALYSIS

Recession points to ANC's inability to ensure economic stability – FF Plus

Wouter Wessels says govt's misguided policies like EWC wholly to blame for situation

Recession points to the ANC government’s inability to ensure economic stability

4 September 2018

The recession in which South Africa currently finds itself, due to the contraction of the country's economy in the second quarter of 2018, points to the ANC government's inability to ensure economic stability. With South Africa's high unemployment rate and poverty, the country simply cannot afford a recession.

The ANC government with its misguided policies, like expropriation without compensation, is wholly to blame for the recession. The uncertainty caused by the proposed amendment to the Constitution is hindering investments and expansion, which would bring about economic growth and more job opportunities.

The government's labour-restrictive legislation and policies are causing large companies to take their business and factories elsewhere, which leads to fewer job opportunities in South Africa.

One of the disturbing indicators related to the recession is that the Rand exceeded the R15 per Dollar limit and at one stage this morning, the Rand-Dollar exchange was R15,13 per Dollar. The agricultural sector shrunk with 29,2%, domestic expenditure decreased with 1,3%, while state expenditure increased with 0,7% for the second quarter.

The FF Plus is of the opinion that the government’s thoughtless policy making and irresponsible populist statements about land and nationalisation must come to an end at once.

The ANC is letting South Africa down by sacrificing the country's economy for the sake of scoring cheap political points in the runup to the 2019 general elections. The government's rash statements and thoughtless policies are costing South Africa dearly.

The country needs a new economic policy where free market principles are followed along with a fiscal policy that will improve the state's financial position, that will ensure accountability and create an environment where the private sector can expand.

A country with empty state coffers that lacks fiscal discipline will not enjoy sustainable economic growth.

Issued by Wouter Wessels, FF Plus parliamentary spokesperson: Finance, 4 September 2018