COSATU discouraged by latest GDP figures
4 June 2024
The Congress of South African Trade Unions (COSATU) is disappointed by the decrease in Gross Domestic Product (GDP) in the first quarter of this year. Whilst the level of growth we have experienced in recent years has been marginal, we were hopeful it would continue an upward trajectory. It is a pity that the sizable cuts to petrol and diesel prices will provide minimal relief to workers and the economy.
The drop in GDP is a reminder that the economy remains fragile and needs support from the state to grow, investment from the private sector, a well-functioning and resourced state, employment programmes and relief for the unemployed.
Key to growing the economy is accelerating Eskom’s maintenance and generation investments to ensure loadshedding remains a thing of the past; that Transnet and Prasa are secured and fully modernised to enable commuters and products to reach their destinations on time; that local government is sufficiently resourced and capacitated to provide quality public and municipal services the economy and working class communities depend upon; and that the fight against crime and corruption is accelerated.
Similarly, the work being done to remove the obstacles to economic growth and boost local procurement through the sectoral master plans is boosted, including reviving the buy local campaign.
Whilst these must be accelerated, it is critical that the Presidential Employment Stimulus and other employment programmes to help young people enter the labour market be massively expanded, the SRD Grant be raised to the Food Poverty Level and its participants linked to skills and employment programmes.
It is equally important that the election of President Cyril Ramaphosa and the appointment of the 7th administration conclude soon to enable government to come up with a mass stimulus package to spur the economy, slash unemployment and poverty, and deliver quality public services.
Issued by Zanele Sabela, National Spokesperson, COSATU, 4 June 2024
