SA's slow growth, recession and what this means going forward

Stats SA released the latest GDP figures, showing that the country has entered a technical recession with growth contracting in two consecutive quarters.

Economist Lumkile Mondi explains in more detail, what's led to this and what it means going forward.

READ: South Africa enters technical recession - Stats SA

ALSO READ: SA economy has lost its momentum- economist

GDP narrowed by 0.7% in the first quarter of 2017 compared to a contraction of 0.3% in the last quarter of 2016.

With the economy growing so slow it means our expected revenue collection from the South African Revenue Services is going to continue declining which means we are going to have to borrow more. Given the recent downgrades it means that we may have to start looking at tax increases.

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

There is no confidence in the economy, with the consumer and business.

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

Mondi attributes the lack of confidence partly to political uncertainty, namely the cabinet reshuffle, which was followed by the downgrade. He says all these events have led to people not trusting where the South African economy is going, as well as the rhetoric around radical economic transformation.

Click on the link below to listen to the full audio...

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
SA economy has lost its momentum- economist

SA economy has lost its momentum- economist

Kevin Lings, Chief Economist, Stanlib says everybody has lost confidence in South Africa, as technical recession announced.

South Africa is getting poorer

South Africa is getting poorer

We are in a recession. The Money Show’s Bruce Whitfield interviews Investec Asset Management’s Nazmeera Moola and The Efficient Group’s Dawie Roodt.

South Africa enters technical recession - Stats SA

South Africa enters technical recession - Stats SA

Goolam Ballim, Chief Economist, Standard Bank says South Africa's economy "is weak and the quality of growth is pitiful".

Is South Africa in a recession? Consider, for example, new car sales...

Is South Africa in a recession? Consider, for example, new car sales...

The Money Show’s Bruce Whitfield interviews ETM Analytics Economist George Glynos.

ANC's subcommittee on economic transformation won’t rule out  a recession

ANC's subcommittee on economic transformation won’t rule out a recession

On Sunday, the committee held a briefing on the party’s economic transformation discussion document.

Zuma responsible for turmoil, recklessness and irrationality  - BLSA

Zuma responsible for turmoil, recklessness and irrationality - BLSA

Reports have emerged that National Treasury director general Lungisa Fuzile has asked to leave his post at the end of this month.

Popular articles
Hassen Adams (he brought Burger King and Dunkin’ Donuts to SA) talks money

Hassen Adams (he brought Burger King and Dunkin’ Donuts to SA) talks money

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

Eusebius Opinion: "Let go Kevin Pietersen, you do not own the school"

Eusebius Opinion: "Let go Kevin Pietersen, you do not own the school"

McKaiser responds to former SA, now England cricketer Pietersen's comments over Maritzburg College pupils holding EFF t-shirts.

Twitter is gobsmacked as Nigeria honours Jacob Zuma with bronze statue and road

Twitter is gobsmacked as Nigeria honours Jacob Zuma with bronze statue and road

During Zuma's visit to Nigeria, the Governor of the Imo State in Nigeria, Mr Owelle Okorocha, conferred an Imo Merit Award on him.

Minister Lynne Brown's partner scored R1.2 million contracts with Eskom

Minister Lynne Brown's partner scored R1.2 million contracts with Eskom

Sikonathi Mantshantsha says this revelation explains why Brown was reluctant to take any action against Eskom executives.

KZN school ordered to stop action against students with EFF shirts

KZN school ordered to stop action against students with EFF shirts

A letter has been addressed to the Maritzburg College principal after an image of the boys went viral last week.

Kloof Street residents living in fear as crime multiplies

Kloof Street residents living in fear as crime multiplies

A Cape Town man was stabbed to death on Saturday while trying to assist two women who were being mugged on Kloof street.

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

After 3 years there are 3 Nic Harry stores (incl online) that sell 100 000 pairs of socks in over 20 countries around the world.