[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...


Recommended

by NEWSROOM AI
Read More
Springboks' loss: 'We were outplayed in every facet of game,' says Eusebius

Springboks' loss: 'We were outplayed in every facet of game,' says Eusebius

McKaiser and callers weigh in on South Africa's 23-13 defeat by the All Blacks on Saturday.

Who influenced the colours of Bo-Kaap? New podcast investigates

Who influenced the colours of Bo-Kaap? New podcast investigates

In a new series, Haji Mohamed Dawjee and Rebecca Davis unravel a number of myths and uncovers why the houses are colourful.

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
Who influenced the colours of Bo-Kaap? New podcast investigates

Who influenced the colours of Bo-Kaap? New podcast investigates

In a new series, Haji Mohamed Dawjee and Rebecca Davis unravel a number of myths and uncovers why the houses are colourful.

Your financial advisor probably earns a commission. That’s a huge problem

Your financial advisor probably earns a commission. That’s a huge problem

Your advisor’s "free" advice may cost you dearly. Pay by the hour, warns personal finance expert Warren Ingram.

Springboks' loss: 'We were outplayed in every facet of game,' says Eusebius

Springboks' loss: 'We were outplayed in every facet of game,' says Eusebius

McKaiser and callers weigh in on South Africa's 23-13 defeat by the All Blacks on Saturday.

Gautrain Sandton water cut until Gupta-linked company pays City R8m - Mashaba

Gautrain Sandton water cut until Gupta-linked company pays City R8m - Mashaba

Joburg City mayor explains the irregularities around ownership of the Gautrain Sandton Station land by Cedar Park Properties.

'Duke and Duchess of Sussex visit highlights goodness of South Africa'

'Duke and Duchess of Sussex visit highlights goodness of South Africa'

Professor Pitika Ntuli weighs in on Prince Harry and Meghan Markle's tour of the country.

'We have evidence that the EFF and Julius Malema took bribes for tenders'

'We have evidence that the EFF and Julius Malema took bribes for tenders'

Arabile Gumede interviews Stefaans Brummer, a journalist at the amaBhungane Centre for Investigative Journalism.