SA economy slips deeper into crisis with no clear plan from Government
7 December 2021
The third-quarter economic data released today by Statistics South Africa (StatsSA), showing a 1,5% contraction in GDP when compared to the previous quarter, confirms the lack of resilience within the economy to recover sustainably from the pandemic. It was already abundantly clear before the economic shock of the pandemic that incoherent economic policy was dampening our economic growth prospects. Attempts to position a failed state at the centre of our economy have led to this catastrophe. There is an urgent need of a clear policy pathway to a sustainable recovery.
Today’s announcement follows the release of the Quarterly Labour Force Survey (QLFS) last week which revealed that the unemployment rate had increased to 34.9%, the highest since the start of the QLFS in 2008.
The steady stream of negative economic data not only confirms that lack of resilience within the economy to absorb economic shocks but also highlights the lack of a clear policy plan to stop the bleeding and set the economy on a positive growth path.
While the DA welcomes the portal that was launched by National Treasury in September to register and provide relief to businesses affected by the unrest and looting in KwaZulu-Natal-Natal and Gauteng in July, the intervention does not go nearly far enough. The latest irrational international travel bans on South Africans will place additional strain on an already faltering economic.