SA GDP contracts at 0.3% in the fourth quarter of 2016

Stats SA has released the latest growth domestic product estimates and has announced a decrease of 0.3% in the fourth quarter of 2016, resulting in a marginal growth of just 0.3%.

Mining and manufacturing have been recorded as a major contributor to the decline.

Lumkile Mondi , Economist and senior lecturer at Wits University School of Economics, says this comes as no surprise given the global economic conditions as well as uncertainty around domestic policy.

This has led to less investments from the private sector, he adds.

With the mining, we know where the problem is, it rests with government.

Lumkile Mondi , Economist and senior lecturer at Wits University School of Economics

The incompetence within the department, starting with the minister, and the unknown appointment that is coming.

Lumkile Mondi , Economist and senior lecturer at Wits University School of Economics

In the manufacturing sector, there are many constraints. Demand remains a challenge domestically.

Lumkile Mondi , Economist and senior lecturer at Wits University School of Economics

In other areas where we are talking about a potential reshuffle, this behavior by government create uncertainty for business.

Lumkile Mondi , Economist and senior lecturer at Wits University School of Economics

Until those are addressed we should accept that we will be a high unemployment economy, low growth economy and serious challenges on the social side.

Lumkile Mondi , Economist and senior lecturer at Wits University School of Economics

Listen to the full analysis below...

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Voting process 'irregular' at KZN ANC 2015 elective conference, court hears

Voting process 'irregular' at KZN ANC 2015 elective conference, court hears

Several branches have taken the KZN ANC leadership to court, calling for it to be dissolved and their resolutions nullified.

Zweli Mkhize: We used to deal with the smoke before the flames could appear.

Zweli Mkhize: We used to deal with the smoke before the flames could appear.

Stephen Grootes in conversation with ANC treasurer general about the situation within the party and current leadership contests.

How will 45% tax hike for super-earners grow economy?

How will 45% tax hike for super-earners grow economy?

Economist Xhanti Patyi says it will have to be proved that money works better for the economy in the hands of government.

Gordhan did as well as he could - analyst

Gordhan did as well as he could - analyst

Deputy Editor at FM (Financial Mail) says transforming the economy of SA should be a collective effort, not left to one person.

Mining job cuts on the cards, industry won't be No.1 employer again - analyst

Mining job cuts on the cards, industry won't be No.1 employer again - analyst

Labour and mining analyst predicts SA mining industry will never return to its heydey of being the largest contributor to GDP.

Like them or not; BAT activities sustain 72K jobs (and it sells a legal product)

Like them or not; BAT activities sustain 72K jobs (and it sells a legal product)

British American Tobacco contributed R18.4bn to SA’s GDP, generated R14.5bn in tax revenues and bought R6bn from local suppliers.

Popular articles
Discovery CEO (and founder) Adrian Gore bares his soul about money

Discovery CEO (and founder) Adrian Gore bares his soul about money

The Money Show’s Bruce Whitfield interviews Gore about his attitude to money (hopes and fears, successes and failures, etc.).

Ocean Basket gives franchise owner the chop after assault video

Ocean Basket gives franchise owner the chop after assault video

The man was immediately divested of his shares and is no longer part of the group, explains Ocean Basket CEO Grace Harding.

LISTEN: A 'smaller nyana' mash-up of Bathabile Dlamini's most outrageous quotes

LISTEN: A 'smaller nyana' mash-up of Bathabile Dlamini's most outrageous quotes

ANC Women's League president Bathabile Dlamini is no stranger to controversy and has made many head-scratching comments before.

WATCH: Cape schoolkids 'starstruck' after Trevor Noah,  Charlize Theron drop by

WATCH: Cape schoolkids 'starstruck' after Trevor Noah, Charlize Theron drop by

Oaklands High principal Reza Patel says it was an extremely exciting experience for both the learners and staff. We can imagine!

CoCT explains new electricity tariffs

CoCT explains new electricity tariffs

Following residents concerns over new electricity tariffs and properties being re-evaluated, Johan van der Merwe provides clarity.