Maimane calls for urgency in addressing SA recession crisis

In the wake of an announcement by Statistics South Africa (StatsSA) earlier today that the country was officially in recession, DA leader Mmusi Maimane has indicated that he was calling for an urgent debate of national importance in parliament.

Mmusi Maimane, leader of the DA Picture: BUSINESS LIVE

Maimane indicated he had written to the Speaker of the National Assembly, Baleka Mbete, today to call for the debate to “allow a collaborative effort in which all sides of the House (which) can present new, innovative ideas as to how we can reverse this persistent economic decline and get South Africa working again.”

StatsSA indicated that GDP growth for Quarter 2 of 2018 down 0.7%, which follows a 2.6% contraction in Quarter 1 of 2018.

Maimane said the corruption, policy incoherence, crumbling SOEs, lack of investment, and unstable governance continues to produce economic instability and rising unemployment.

He said there was hope in an array of new and alternative ideas that, if implemented, could ignite growth and get the economy running.

GDP per capita statistics showed that actual household income has been in decline for the past five years while in 2018:

*Unemployment was reaching its highest level since the dawn of democracy – with almost 10 million jobless South Africans.

*VAT increasing for the first time in 20 years – a direct financial assault on the poor, working and middle classes.

*The highest income tax bracket increasing for the 3rd consecutive year;

*Petrol prices sitting at well over R15 per litre, shooting up food and transport costs; and

*The rand at a 27-month low – its weakest value since June 2016.

Maimane who described the country’s economy on “life support as a direct result of a corrupt and failing ANC government which has no plan for our economy,” said  a united, non-racial and prosperous nation would not be achieved without a growing economy which created jobs, opportunity and wealth for all.

 

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