African National Congress (ANC) Treasurer General, Paul Mashatile, says government must focus on implementation of good policies – especially infrastructure development – to get the country on a viable economic growth path.
President Cyril Ramaphosa last week said a Social Compact on Economic Recovery will be presented to him soon.
Massive infrastructure projects are expected to be part of government’s plan to get the country out of recession and onto a sustainable growth path after the coronavirus pandemic. These include a Social Compact on Economic Recovery, the Economic Recovery Strategy, and the Presidential Employment Stimulus.
Statistics released on Tuesday showed that the GDP contracted by 16.4 % in the second quarter, which is 51% on an annualised basis.
— Stats SA (@StatsSA) September 8, 2020
According to the statistics, construction was the biggest loser. The industry experienced its eighth consecutive quarter of economic decline. Manufacturing output shrank by 74.9%.
In the video below, South Africa’s economy plunges an annualised 51% in second quarter:
Mashatile says it’s important to create jobs and for people to see infrastructure being developed.
However, outgoing Wits Vice Chancellor Adam Habib shas blamed Ramaphosa’s problems on a state that lacks capacity in implementing big projects.
In the video below, Stats SA releases SA economic growth figures:
Below is President Cyril Ramaphosa’s statement on the GDP numbers: