The latest figures on the South African economy’s GDP status show that ‘our economy is at a standstill, and South Africans are becoming poorer’, according to DA MP and Shadow Minister of Finance Dion George.
‘The status quo will prevail as long as the ANC remains in power,’ he said in a statement.
George was referring to the figures from Stats SA showing 0.1% growth in the fourth quarter of 2023.
Minister in The Presidency Khumbudzo Ntshavheni said in a statement that the ‘growth is particularly encouraging as it surpasses pre-pandemic levels’ and ‘indicates a resilient economy showing signs of recovery, and bettering previous strength’.
She said: ‘This modest uptick in GDP is a testament to the concerted efforts of various sectors and stakeholders in navigating the complexities that were posed by the Covid-19 pandemic and other domestic and global challenges.’
However, George said: ‘With each passing day, the irreparable damage to our economy and international standing because of the ANC’s governance failure grows more evident. Its tenure has been catastrophic.’
He added: ‘The positive takeaway from today’s numbers is that South Africa’s private sector continues to display resilience despite the Government’s proclivity to crowd it out and reluctance to enact the requisite growth-friendly reforms. This is a testament to the sector’s unrealised potential and what could be achieved with competent governance.’
George said that ‘(instead) of adopting ruthless and targeted growth-focused reforms’, the government was ‘doubling down on destructive policies like expropriation without compensation and racialisation of our employment legislation and public procurement framework’.
‘Such reckless policy missteps impact vulnerable South African households who are already reeling under a government-induced cost-of-living crisis directly. The ruling party has made numerous statements about addressing the cost-of-food crisis, specifically proposals to stabilize food prices. However, no concrete actions have been implemented, and the situation continues to deteriorate quickly.’
Business Day said in an editorial: ‘It is hard to imagine a sadder piece of public relations than the statement the government issued on Tuesday welcoming the economy’s fourth-quarter growth. A figure of 0.1% is not growth. It is basically zero.’
The newspaper said: ‘That [Khumbudzo Ntshavheni] finds it “particularly encouraging” that the fourth quarter surpassed pre-pandemic levels is also sad: GDP has fallen from its post-Covid peak in the fourth quarter of 2022, so we have squandered even the recovery we had managed to achieve.
‘What makes the latest numbers even sadder is that they complete a decade in which the economy has grown by an annual average of just 0.8%, as the Treasury pointed out in its recent macroeconomic policy review. That is exactly half SA’s population growth rate. That means the country is going backwards, with average living standards sliding fast.’
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