[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
'I got retrenched and it took a toll on my relationship' - on money and intimacy

'I got retrenched and it took a toll on my relationship' - on money and intimacy

Money is one of the top causes of relationship fights and divorce. Dr Eve and callers discuss how it can affect sexual intimacy.

[LISTEN] 'Zuma's administration put the creative sector in the economic cluster'

[LISTEN] 'Zuma's administration put the creative sector in the economic cluster'

Eric Miyeni chats to Africa Melane about some of what's improved SA's film industry and the upcoming South African International Film Festival.

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
DStv subscription price hikes for 2019

DStv subscription price hikes for 2019

MultiChoice will increase the prices of certain DStv packages from 1 April.

[LISTEN] Discovery Health defends decision to shift certain ops to day hospitals

[LISTEN] Discovery Health defends decision to shift certain ops to day hospitals

Kieno Kammies speaks to Dr Ryan Noach Deputy Chief Executive at Discovery Health and Dr K who says his patients are suffering.

Here's how to check your load shedding schedule in Cape Town

Here's how to check your load shedding schedule in Cape Town

Eskom has warned that more power cuts can be expected as maintenance continues over the next twelve months.

Eskom top manager used load-shedding to enrich friend, then quit - reports

Eskom top manager used load-shedding to enrich friend, then quit - reports

Claims that Koos Jordaan helped his friend get R10 billion contract and then resigned shortly after an investigation was launched.

How to make sure your aluminium windows are burglar-proof

How to make sure your aluminium windows are burglar-proof

Houses with aluminium window frames are urged to tighten up security as a new home invasion trend grows in the northern suburbs.

Criminals targeting homes with aluminium windows, warns neighborhood watch

Criminals targeting homes with aluminium windows, warns neighborhood watch

The Panorama, Welgelegen and Plattekloof Neighbourhood Watch has identified a new house break-in trend.