[LISTEN] 'We cannot blame the current situation on the global financial crisis'

How bad is the South African economy?

Are we in a dire situation economically?

Statistics SA released the GDP figures and said this is the second drop, following a decrease of 2.6% in the first quarter of the year.

Gross domestic product fell by 0.7% in the second quarter of 2018 placing South African in a technical recession.

Eusebius McKaiser engaged founding director at the Centre for Economic Development and Transformation Duma Gqubule and Director at Political economy Southern Africa Siya Biniza to look at the statistics, why the GDP is dropping and what should be done.

I talk about the last decade that we had as South Africa in terms of economic development. I look at the period from 2009 to 2017 and our economy just grew by 1.6% per year and our GPD per capita by 0.3% per year.

Duma Gqubule, founding director at the Centre for Economic Development and Transformation

In economic terms, that is the equivalent of standing still. That is a desperate situation we are in as a country at this moment.

Duma Gqubule, founding director at the Centre for Economic Development and Transformation

We cannot blame the current situation on the global financial crisis as our politicians want to do. We are the most unequal country in the world.

Duma Gqubule, founding director at the Centre for Economic Development and Transformation

This is time for desperate measures.

Duma Gqubule, founding director at the Centre for Economic Development and Transformation

However, Director at Political economy Southern Africa Siya Biniza says we must not be alarmist about the state of the economy.

What's important is to remember the historical legacy of where we come from and why we are here.

Siya Biniza, Director at Political economy Southern Africa

For me, it's primarily just an issue of inequality that's stuck us where we are.

Siya Biniza, Director at Political economy Southern Africa

In SA we have an overly formalised economy that doesn't allow people to engage in an informal level and at the same time, the formal sector has been caught up in a lot of collusions which is blocking out new entries and creating very high barriers for new entry.

Siya Biniza, Director at Political economy Southern Africa

Listen to what callers had to say about the matter...


This article first appeared on 702 : [LISTEN] 'We cannot blame the current situation on the global financial crisis'


Recommended

by NEWSROOM AI
Read More
[LISTEN] Cervical cancer is the only cancer that is caused by sex - Dr Eve

[LISTEN] Cervical cancer is the only cancer that is caused by sex - Dr Eve

Dr Eve discusses cervical cancer and how it can be prevented.

[LISTEN] Is Gqom really music? Callers share their views

[LISTEN] Is Gqom really music? Callers share their views

Callers on the open line discuss class appropriation by musicians and music genres.

Rand nosedives as South Africa flirts with recession

Rand nosedives as South Africa flirts with recession

The Money Show’s Bruce Whitfield interviews George Glynos, Head of Research at ETM Analytics.

Why the rand is going down, down, down…

Why the rand is going down, down, down…

Bruce Whitfield interviews Dr Adrian Saville (Gordon Institute of Business Science) and Rand Merchant Bank Strategist John Cairns.

Take-home pay in South Africa is, on average, declining (recession time again?)

Take-home pay in South Africa is, on average, declining (recession time again?)

The Money Show’s Bruce Whitfield interviews economist Mike Schüssler.

SA economy shrunk by 2.2% in Q1. Here's why

SA economy shrunk by 2.2% in Q1. Here's why

South Africa's economy shrunk by 2.2% in the first quarter of 2018 after expanding by 3.1% in the final quarter of last year.

Popular articles
Gigaba implicated in Transnet impropriety

Gigaba implicated in Transnet impropriety

Gigaba has been fingered in a forensic investigation related to the procurement process for locomotives from China South Rail.

[LISTEN] Cervical cancer is the only cancer that is caused by sex - Dr Eve

[LISTEN] Cervical cancer is the only cancer that is caused by sex - Dr Eve

Dr Eve discusses cervical cancer and how it can be prevented.

Angry customer stops at nothing to expose bad service at upmarket hotel

Angry customer stops at nothing to expose bad service at upmarket hotel

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone Viral'.

Motorist who killed two goslings has been identified

Motorist who killed two goslings has been identified

According to the SPCA, he will be charged with contravention of the Animal Protection Act.

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

"I have no desire for clothes. I have no desire for holidays. I have no desire for outings. All I see is the suffering of people…"

Group distances itself from N2 car spinners caught on film

Group distances itself from N2 car spinners caught on film

It turns out that the petrol heads who span cars on the N2 were part of the SA Torque Cape Town Breakfast Run.

Uber customer threatened with hockey stick by driver

Uber customer threatened with hockey stick by driver

An Uber customer shares how she was threatened by an Uber driver with a hockey stick after a disagreement.