SA may be out of recession, but there's a long road ahead to economic recovery

South Africa's economy has officially emerged from a technical recession.

This comes after Stats SA has announced that the country saw third-quarter GDP expanding by 2.2% quarter on quarter.

South Africa suffered two successive quarters of negative growth, slipping into a technical recession in the first half of the year.

Economist Prof Raymond Parsons says South Africa has to throw its weight behind the economic recovery and ensure that it is sustainable.

Parsons argues that load shedding is not working in the economy's favour and is detrimental to investor confidence.

He adds that South Africa's growth forecasts need to strengthen before the country can become complacent.

I don't think we must be complacent because, even though we have come out of the recession, the forecasts of growth are still only round about 1.5% over the next year or so. That's not good enough for SA and employment.

Prof Raymond Parsons, Economist at North West University School of Business

We need to support this recovery so that we can get onto a much higher growth path.

Prof Raymond Parsons, Economist at North West University School of Business

We're just coming out of recession, we want as much good economic news as we can get... We don't need any more economic uncertainty in this economy.

Prof Raymond Parsons, Economist at North West University School of Business

Listen to the analysis on The Xolani Gwala Show:


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