4 December 2018
The Federation of Unions of South Africa (FEDUSA) has welcomed the third quarter Growth Domestic Product (GDP) growth of 2.2% as announced by Statistics South Africa (StatsSA) this morning.
The announcement sees South Africa officially move out of technical recession after consecutive negative growth in the first and second quarters of this year. FEDUSA welcomes the announcement that comes as a great relief for cash strapped consumers and members, who have been hard hit by food, fuel and electricity costs, said FEDUSA Acting President, Chris Klopper.
Growth was driven by manufacturing and agriculture as predicted by a cross-section of economists earlier on Tuesday ahead of the official release of the figures with manufacturing growing by an impressive 7.5% compared to agricultures 6.5%.
Despite the hardships faced by consumers because of the high fuel prices that had risen consistently since the beginning of the year, wholesale and retail sectors and the financial sector registered respectable 3.2% and 2.3% increases respectively over the third quarter and contributed strongly to the overall growth.
However, the highly stressed and struggling sector remained in the economic doldrums declining by a massive 8.8% while the embattled construction sector did not fare any better, registering a negative growth on minus 2.7%.
Whilst the GDP Growth is welcomed on the back of the recently held Jobs and Investment Summits, sustaining this growth remains the ultimate challenge. Similarly, FEDUSA remains concerned and appeals for immediate intervention in the current Eskom loadshedding schedules, that may well dilute the overall effect of sustaining the current and future growth trajectory, concluded Klopper.
For interviews please contact:
FEDUSA Acting President
083 708 7733
FEDUSA Deputy General Secretary
079 696 2625
FEDUSA Media and Research Officer
072 637 8096