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...


This article first appeared on 702 : SA GDP contracts at 0.3% in the fourth quarter of 2016


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