COSATU statement on the 2020 GDP numbers
9 March 2021
The Congress of South African Trade Unions has noted the report that shows that South Africa’s economy, as measured by the GDP has shrunk by a further 7% in the year 2020. To put this figure in perspective, the analysis of Statistics South Africa emphatically underscores the fact that this is the biggest annual fall in output since 1946. In addition, the economy is still below the 2019 baseline (pre-COVID-19 GDP) and in fact in terms of per capita GDP is still well below the 2014 peak.
The federation is not shocked by these numbers because they reflect a paralysis in SA economic policy trajectory, the severe impact of COVID-19 notwithstanding. This is another reminder that our National Treasury is an overhyped and glorified department that has failed the people of this country by stunningly mishandling the economy.
The government’s decision to suffocate the economy by implementing a framework of economic policies that do not place employment creation as a priority but geared at reducing the budget-deficit and containing the debt-burden has backfired.
The 6,3% growth in the fourth quarter is defocusing us because the economy was being reopened and it distracts us from sorting out our intractable economic problems and confronting the tremendous inbuilt economic crisis based on the government’s obsession with austerity.