0.4% GDP gain: GNU must prioritise economic growth

3 September 2024

Today's release of the second quarter Gross Domestic Product (GDP) data by Statistics South Africa (StatsSA) is a sobering reminder of the precarious state of our economy. The growth of only 0.4% in the previous quarter highlights a stagnating economy that continues to flirt with recession.

For over a year, our economy has been teetering on the edge of recession. We now have a new government, yet the fundamental issues plaguing our economy persist.

In a country as economically divided as ours, we should be striving for continuous growth of at least 4-5% annually to create jobs sustainably and alleviate poverty. Yet, as more than 8 million South Africans remain jobless and nearly half of our population struggles to afford three meals a day, these figures are unacceptable. The recent Consumer Price Index (CPI) data, released just a fortnight ago, further highlights the ongoing cost-of-living crisis that makes our economy increasingly unaffordable.

While the Government of National Unity has made strides in improving investor outlook, our economy remains in crisis. We therefore call on the government to expedite its efforts in the following critical areas:

- Providing a comprehensive policy programme for the 7th Administration to bolster investor confidence;

- Reforming our dysfunctional ports, which rank among the least efficient globally;

- Improving our freight rail and logistics systems to enhance our export capabilities;

- Ensuring energy security by ending load-shedding once and for all;

- Strengthening local governments, which are the frontline for business operations; and

- Reducing crime, as our streets become increasingly unsafe.

Only through sustained economic growth can we hope to tackle the triple challenges of unemployment, poverty, and inequality.

Issued by Wendy Alexander, DA Spokesperson on Finance, 3 September 2024