South Africa is facing an economic crisis. Over the past five years, the economy has grown at less than 2% per annum while GDP growth figures for the second quarter of 2015 showed a contraction of 1.3%.
If third quarter growth figures reflect a further contraction, we will officially be in a recession.
“Addressing this crisis requires that we show strong political leadership in order to find solutions that will improve our economic outlook. I have therefore written to President Jacob Zuma to request a meeting to discuss the crisis before us and share possible solution,” said Mmusi Maimane, leader .
Unemployment remains well above 30% with the majority of those affected being young, black South Africans. Key sectors, such as mining, manufacturing and tourism, are shedding jobs with no sign of recovery in sight.
Urgent action is needed to arrest the backward slide of our economy and prevent any further deterioration in our economic outlook. While the impact of global economic conditions on the domestic economy cannot be dismissed, South Africa is clearly underperforming relative to its peers.
The national general council discussion documents recently released by the ANC acknowledge this reality, conceding that key interventions taken by government “have not shifted the economy onto a new sustained inclusive growth path.”
Rising unemployment, especially among young people, is a significant threat to our democracy. It is in the best interest of South Africa that we work together to address this crisis and the impact it is having on the ability of South Africans to support themselves and their loved ones.
“The Democratic Alliance (DA) believes that these problems can be overcome, and recently outlined five steps that it would take to stimulate the economy. These include actions to solve the electricity crisis as well as policy amendments aimed at labour market reform. We believe these measures will go a long way to kick-starting economic growth and creating jobs’ concluded Maimane.
Tags: Mmusi Maimane