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:


This article first appeared on CapeTalk : SA may be out of recession, but there's a long road ahead to economic recovery


Recommended

by NEWSROOM AI
Read More
Pretoria High Court sets aside public protector's Vrede dairy project report

Pretoria High Court sets aside public protector's Vrede dairy project report

Mkhwebane found to have acted irrationally by neglecting a complaint laid in May 2016.

'All pointers direct to the Islamic State'

'All pointers direct to the Islamic State'

Terrorism expert Jasmine Opperman says precautions need to be taken when travelling to Egypt, Europe, and the Middle-East.

Transnet fiddled with numbers to favour China South Rail, says former engineer

Transnet fiddled with numbers to favour China South Rail, says former engineer

Eyewitness News senior reporter Barry Bateman gives updates from the state capture commission.

'Slow justice system not grounds to grant a permanent stay of prosecution'

'Slow justice system not grounds to grant a permanent stay of prosecution'

Senior lecturer Kelly Phelps says the court is unlikely to approve Zuma's application only because it took time to charge him.

Marawa was personally told that his contract will be cancelled, says SuperSport

Marawa was personally told that his contract will be cancelled, says SuperSport

The popular sportscaster took to Twitter on Thursday night after receiving a text message notifying him not to come to work.

'It's unlikely that digital terrestrial television will be launched in 2019'

'It's unlikely that digital terrestrial television will be launched in 2019'

TechCentral founder and editor Duncan McLeod says most of the country is still on the analogue platform.

Popular articles
Standard Bank takes on Capitec Bank with low-fee account, gigabytes of free data

Standard Bank takes on Capitec Bank with low-fee account, gigabytes of free data

The account costs R4.95 per month; you get 1GB of free data. Swipe 4 times a month; you get 0.5GB of free data and R50 airtime.

'You can easily get a 15% total return from a share like MultiChoice'

'You can easily get a 15% total return from a share like MultiChoice'

Is there an investment case for MultiChoice? Arabile Gumede interviews Jacques Plaut, a Portfolio Manager at Allan Gray.

Huawei users in SA told not to panic over Android ban

Huawei users in SA told not to panic over Android ban

Google is suspending its business relationship with Chinese smartphone manufacturer.

ANC national executive committee finalising top jobs list for Parliament

ANC national executive committee finalising top jobs list for Parliament

Former National Council of Provinces chairperson Thandi Modise is expected to be the next speaker of the National Assembly.

[WATCH] Eusebius delivers emotional obituary for Kaizer Chiefs

[WATCH] Eusebius delivers emotional obituary for Kaizer Chiefs

The Glamour Boys lost the Nedbank Cup final to underdogs TS Galaxy on Saturday.

'It is very clear that Ramaphosa is under attack from Magashule and others'

'It is very clear that Ramaphosa is under attack from Magashule and others'

News24 editor-in-chief Adriaan Basson says there is a definite fight back from the ANC secretary-general against the president.

Schwarzenegger urges public not to give Sandton 'fan' the attention he craves

Schwarzenegger urges public not to give Sandton 'fan' the attention he craves

A video of a young man kicking actor and former US governor Arnold Schwarzenegger in the back on Saturday in Joburg went viral.