COSATU welcomes slight increase in GDP

3 September 2024

The Congress of South African Trade Unions (COSATU) welcomes the 0.4% rise (albeit still small) in Gross Domestic Product (GDP) in the second quarter of this year. While the economy has all but remained stagnant in recent years, the marginal growth in GDP is encouraging as it comes on the back of an initially projected 0.1% contraction in the first quarter which itself has now been revised to a flat 0.0% growth.

Coupled with Eskom’s steady power supply in the last four months, the slight increase in GDP we hope indicates that the worst is behind us. Adding to the optimism is the nearly R1 a litre decrease in petrol and diesel on Wednesday, that will take fuel prices to their lowest level since 2023. This will provide much needed relief to workers and the economy.  

The marginal growth in GDP is however a reminder that the economy is fragile and needs support from government to grow, investment from the private sector, a well-functioning and resourced state, employment programmes and relief for the unemployed.

Key to growing the economy is accelerating Eskom’s maintenance and generation investments to ensure loadshedding remains a thing of the past; ensuring that Transnet and Prasa are secured and fully modernised to enable commuters and products to reach their destinations on time; rebuilding a local government that is sufficiently resourced and capacitated to provide quality public and municipal services the economy and working class communities depend upon; and accelerating the fight against crime and corruption.

Similarly, the work being done to remove the obstacles to economic growth and boost local procurement through the sectoral master plans must be boosted, including reviving the buy local campaign.

Whilst these need to be accelerated, it is critical the Presidential Employment Stimulus and other employment programmes to help young people enter the labour market are massively expanded, the SRD Grant be raised to the Food Poverty Level and its participants linked to skills and employment programmes.

COSATU calls on the government of national unity to turn its back on austerity and put resources into fixing the state and stimulating the economy.

Issued by Zanele Sabela, National Spokesperson, COSATU, 4 September 2024