Statement by Gareth Ackerman, Co-Chair, Consumer Goods Council of South Africa (CGCSA) on the release of the second quarter GDP figures.
According to StatsSA, GDP growth in the second quarter of 2017 recovered marginally to 2.5% compared with a decline of 0.7% in the first quarter. As a result of that decline, the economy went into its second recession in nearly a decade. The second quarter recovery is still inadequate to ensure sustained GDP growth and restore investor confidence. The South African economy remains fragile, growth is being constrained by policy and political uncertainty and the medium term outlook remains weak. Among other initiatives, the urgency to implement the 14-point economic recovery outlined recently by the Minister of Finance cannot be over-emphasised. So is the need to urgently tackle poor governance and management of state owned enterprises, which pose a significant risk and threat to economic recovery and South Africa’s overall credit rating. CGCSA members are committed to inclusive economic growth and will continue to engage with the government to achieve this objective.