COSATU statement on the latest GDP numbers
5 September 2017
The Congress of South African Trade Unions has noted the report that shows that South Africa’s economy, as measured by the GDP has rebounded with 2.5% growth during the second quarter of the year. The second quarter data shows year-on-year GDP growth was 1.1%, and for the six months growth has been 1.1%.
This report represents an improvement from the decline that was reported in the last two quarters, where we saw a decline of 0.3% in the fourth quarter of 2016 and a 0.7% contraction in the first quarter of 2017.
According to Statistician general Pali Lehohla the agricultural sector was the biggest contributor to the GDP with a contribution of 0.7 of a percentage point to overall GDP growth. Mining grew 3.9% contributing 0.3 of a percentage point to overall growth.
While these numbers are encouraging, it is still too early to celebrate. We cannot ignore the fact that GDP is but one indicator of economic development and does not factor in other indicators such as unemployment and income inequality.