GDP growth and petrol price decrease will positively affect the economy
Minister of Economic Opportunities, Beverley Schäfer welcomes the news that the country is no longer in recession. Coupled with a decrease in the fuel price this will help consumers and the agricultural sector.
Stats SA today announced that South Africa has exited a technical recession, with third quarter GDP figures showing 2.2% growth.
The main drivers of growth were the secondary and tertiary sectors, which grew by 4.5% and 2.6% respectively.
While the primary sector recorded a contraction, Minister Schäfer said she was pleased to see that agriculture had shown some recovery, recording 6.5% growth.
“In the second quarter we saw the agricultural sector contract by 29.2%, mostly as a result of the drought which affected the Western Cape, and late harvests of sugar and maize elsewhere in the country. The recovery, albeit slow in this quarter, is heartening to see. With the recent increased water allocations to the agricultural sector in the province, we believe that this sector will be assisted in making its recovery.”
Minister Schäfer said “the GDP growth recorded in the third quarter is a positive step as weak growth was one of the major risks highlighted by ratings agencies. However, despite this quarter’s growth, experts are still predicting growth of between 0.6 and 0.8% for this year which is not enough if we want to encourage investment and create jobs.”
Schäfer said this week’s decrease in the fuel price would also positively impact on the economy.
“Consumers’ pockets have been hit hard by consecutive fuel price hikes, which have also impacted the cost of transport and food,” she said.
“The country’s agricultural sector has also been put under pressure as fuel price increases impact production and transport costs. In addition, many of the fertilizers and pesticides used in the sector are also affected by the rise in crude oil prices. The drop in the petrol price, coupled with the easing of water restrictions in this sector, will allow farmers in the Western Cape a small amount of breathing room to recover,” she said.
Media Queries:
Bianca Capazorio
Tel: 021 483 3550
Cell: 072 372 7044
E-mail: bianca.capazorio@westerncape.gov.za
