GOOD Statement by Brett Herron,
GOOD Secretary-General & Member of Parliament
06 December 2022
South Africa’s economy is showing some positive signals, with the gross domestic product (GDP) increasing by 1,6% in the third quarter of 2022.
StatsSA today reported the higher than expected growth, mainly in eight industries including finance, agriculture, transport and manufacturing.
This is a welcomed bounce back after the 0.7% contraction in the second quarter and means South Africa avoided a push into a technical recession.
StatsSA further added that the size of the economy now exceeds pre-pandemic levels with real GDP, measured by production, standing at R1 161 billion in the third quarter.
The encouraging data comes at a time when the country is faced with political uncertainty and dealing with the ongoing power crisis which has been devastating businesses and livelihoods.
However, we need to keep in mind that the road is long and South Africa requires much higher and constant growth to address some of our most pressing challenges including inequality and poverty.
Even if our growth rate manages to reach 3%, this will not address our staggering unemployment in a meaningful way over the next decade, which means millions will remain jobless for years to come.
Therefore while the robust rebound is a sign that we are moving in the right direction, we will need to sustain this to bring about the necessary transformation.
This will firstly require an urgent end to so-called ‘loadshedding’ with a stable and more sustainable supply of electricity as part of a just transition. This will require the country to embrace new technologies, especially in the energy sector.
South Africa also needs a realistic and meaningful financing regime to support entrepreneurship and to build a nation of small business owners that will further strengthen the economy.
We need continued investment in infrastructure which will in turn stimulate the construction sector and its supply chain. At the same time we need to fix South Africa’s broken freight and public transport system that is preventing extensive economic progress.
All these steps will support the creation of physical conditions that are conducive to much-needed private investment, as part of our joint effort to build a stronger economy.
Media Enquiries:
Brett Herron, GOOD Secretary-General & Member of Parliament
Cell: 0825183264
Email: bretth@forgood.org.za
Janke Tolmay, GOOD Media Manager
Cell: 0733671223
Email: janke@forgood.org.za