Busa slams government’s inaction as SA teeters on technical recession

Busa president Sipho Pityana said very little had happened between the end of September and now to change the trajectory of the economy and thus another technical recession was looming for South Africa. Photo: Simphiwe Mbokazi/African News Agency (ANA)

CAPE TOWN – Business Unity SA (Busa) slammed the government as Statistics SA announced that the country’s economy had shrunk by 0.6 percent in the third quarter, saying the consequences of the government’s inaction on the economy were once again upon us.

Busa president Sipho Pityana said very little had happened between the end of September and now to change the trajectory of the economy and thus another technical recession was looming for South Africa. 

StatsSA said one of the biggest negative contributors to the gross domestic product (GDP) figures in the third quarter was the mining industry, which fell by 6.1 percent. 

Pityana said despite some progress, not enough had been done to reduce policy uncertainty and encourage investment in the mining industry, a potential source of jobs and revenue for the country. The country’s manufacturing industry – another key source of jobs – decreased by 3.9 percent.

Reza Hendrickse, Portfolio Manager at PPS Investments said although technically not in a recession at the moment, conditions on the ground in South Africa were undoubtedly recessionary. 

Source: iol.co.za