COSATU statement on the second-quarter GDP numbers
7 September 2021
The Congress of South African Trade Unions has noted of the latest gross domestic product figures released by Statistics South Africa showing that South Africa’s economy expanded by 1,2% in the second quarter of 2021. The same numbers show that the economy is 1,4% smaller than it was before the outbreak of COVID-19.
Realistically, these deceptive numbers reflect the effects of the reopening and partial stabilisation of the economy after a period of extreme lockdown. This is a reminder that improving vaccination numbers and avoiding another overwhelming fourth wave of coronavirus infections is paramount if the economy is to be properly stabilised.
While these numbers reflect the positive effects of reopening the economy, they hide the frightening reality of an economy that still does not have a reliable and secure electricity supply and an economy that is seriously underperforming in terms of real growth. Economies are about the people, and in South Africa, we have the highest unemployment on record and more than fifteen million people struggle to have three meals a day.
The misguided government austerity programme, including wage freezes and the ongoing privatisation, will worsen unemployment and continue to greatly reduce the purchasing power of many South Africans. This will devastate an economy that derives 60% of its capacity from consumer spending.