SAFTU statement on South Africa's economic and political catastrophe
8 June 2017
The South African Federation of Trade Unions is alarmed, though not surprised, at the quarterly GDP statistics which reveal that for the second consecutive quarter the economy has not grown at all but shrunk.
We are not surprised because this recession is the inevitable consequences of a deep, structural economic and political crisis which we have foreseen and which had already led to appalling levels of unemployment, widespread poverty and the widest inequality in the world. This will now get far worse and will have catastrophic consequences for the vast poor majority of South Africans in particular.
What makes the situation even more sinister is that the quarter which saw 'negative growth' of -7%, just like the quarter's equally catastrophic unemployment statistics, covers a period before the credit ratings down-grades which followed the cabinet reshuffle. This is certain to make both growth and employment statistics for the next quarter even more abysmal.
The main victims will once again the poor, whose living standards were falling even when the GDP was growing; now that it is shrinking they face huge additional attacks.