Treasury remains upbeat despite recession
Treasury says there are some "green shoots” in the economy, despite South Africa officially falling into a recession.
Gross Domestic Product (GDP) contracted by 0.7% in the first quarter of the year, the second consecutive quarter of negative growth.
But Treasury remains optimistic, saying there are several measures the country could implement to boost economic growth. These include ensuring reliable electricity supply, and less volatile labour relations.
Finance minister Malusi Gigaba will be meeting with business leaders soon to discuss ways of achieving inclusive economic growth.
"The current growth rate, if sustained, will lead to a further decline in GDP per capita and revenue, risking the sustainability of our fiscal framework and more importantly undermining the delivery of social services,”Treasury says.
Treasury says now more than ever government, business and labour need to work together to get the economy growing.