DA & EFF: “Declining GDP contradicts Zuma’s “no doom and gloom” comments

BY CHARL BOSCH - AUGUST 26, 2015

The Democratic Alliance (DA) and Economic Freedom Fighters (EFF) have hit back at President Jacob Zuma’s remarks that the country’s economy was not crisis.

According to data released by Statistics South Africa yesterday, economic growth for the second quarter of 2015 shrank to 1.3%, the lowest since the 1.6% during the first quarter of 2014. Among the sectors hardest hit were agriculture (-17.4%), mining (-6.8%) and manufacturing (-6.3%).

Speaking in a statement, DA Shadow Minister of Finance, David Maynier, said the continuing decline refutes Zuma’s comments in Parliament last month that the economy was not all “doom and gloom”.

“That the GDP decreased by 1.3 percent means there is now a very real danger that the economy may slip into recession and that there will be further job shedding in South Africa,” Maynier said in a statement.

“Most importantly the economic slowdown and possible recession is likely to destroy the prospects of employment for the 7.6 million people looking for work in South Africa”.

In a similar reaction, EFF Acting National Spokesperson, Fana Mokoena, said the decline is proof that Zuma mislead the country on the chances of any economic growth, after his announcement in Parliament that an increase of three percent would be recorded over the next few years.

“The ANC government has ran out of ideas on how to respond. It is only a matter of time before the economy dips into a recession,” he said in a statement.

“It is likely that, South Africa will be in a technical recession come the third quarter of the year. It is also highly unlikely that the ANC government has the capabilities to respond with a coherent economic policy solution to deal the economic turbulences South Africa is in today”.