Recession won’t flow into third quarter, says ANC
The African National Congress (ANC) says the fact that South Africa has slipped into a recession is no
cause for panic.
On Tuesday, Statistics SA released the growth domestic product (GDP) figures which showed that the South African economy moved into a technical recession with a negative growth rate of -0,7% during the second quarter of 2018.
“We understand the challenges and problems that the recession poses to the economy and the employment situation, we therefore call on government to move with speed and take the necessary interventions to revise the situation,” says the chair of the ANC’s subcommittee on economic transformation, Enoch Godongwana.
It has called on the government to implement a stimulus package a soon as possible.
The ANC says there are also other interventions the government could implement to stimulate economic growth, including tax credits for companies that invest in job creation, as well as agricultural support packages that will boost economic growth and food security.
“The key intervention is reprioritising infrastructure development because they can be implemented quickly since they are focused on construction and maintenance and that in the mediate will make an impact on job creation,” says Godongwana.
Godongwana says South African shouldn’t panic, as the party doesn’t believe the recession will flow into the third quarter.
“I don’t think South Africans should panic. As we have said this is a technical recession which is over two consecutive quarters. I don’t think it will continue to the third quarter so I don’t think South Africans should panic.”