Dismal 0.6% growth a direct result of failed ANC policy
5 September 2023
Today, StatsSA confirmed a rapidly deteriorating economic landscape. This is reflected in the dismal 0.6% growth in our gross domestic product (GDP) over the second quarter of 2023. A direct result of failed ANC policy.
In February 2023, the National Treasury estimated a growth rate of 0.9%, a target that, even though low and uninspiring, was evidently overly optimistic. In fact, our economy will not grow at the projected 1.4% over the medium term, given an ongoing government-induced energy crisis. This means that revenue was overstated in the budget and less money will be available for crucial expenditure on service delivery and social support.
The flailing GPD prospects has forced Treasury to introduce austerity measures. Already citizens are provided with decrepit state services in water, electricity, education, health, transport, and safety, among other areas.
Over the last 15 years, South Africa's economy has underperformed, with an average annual GDP growth rate of 1.2% since 2008. Additionally, GDP per capita has declined by around R3,000 during this period. This sluggish growth has manifested in swelling public debt, diminished fiscal space, vanishing employment opportunities, and growing public disillusionment.