The Federation of Unions of South Africa (FEDUSA) is very concerned by South Africa’s meagre 1.4% increase in real gross domestic product (GDP) over this financial quarter. “South Africa must tackle the increasing concerns surrounding slow economic growth and high unemployment rates,” said FEDUSA General Secretary, Dennis George.
While FEDUSA acknowledges that the United States of America and Eurozone countries are currently economically stagnant or in a mild recession, South Africa needs to increase the rate of economic growth to an average of 7% a year in order to meaningfully impact the country’s very high unemployment figures. South Africa is facing a real unemployment rate of 25% of the labour force, many of whom are young people between the ages of 25 and 30, and FEDUSA has on numerous occasions called on government to address the ticking time bomb of youth unemployment.
FEDUSA has already raised concerns regarding further possible economic contagion from Europe and America with the Economic Cluster Ministers in Finance, Pravin Gordhan, Economic Development, Ebrahim Patel, Trade and Industry, Rob Davies and the Governor of the South African Reserve Bank (SARB), Gill Marcus.
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