GDP growth an improvement: DA

By Drum Digital
27 August 2013

The latest economic growth figure of three percent represents a marked improvement.

The latest economic growth figure of three percent represents a marked improvement, the Democratic Alliance said on Tuesday.

"This is a marked improvement on the depressed 0.9 percent annualised Gross Domestic Product (GDP) growth our economy achieved in the first quarter," DA MP Tim Harris said in a statement.

"What is extremely worrying to note, however, is the reported five percent decrease in primary sector economic growth during the second quarter -- a sector that should be at the forefront of job creation in the economy."

Earlier on Tuesday, StatsSA announced that the South African economy grew by three percent in the second quarter of 2013.

Main contributors to the increase in economic activity were the manufacturing industry (1.7 percent), finance, real estate and business services (0.8 percent), and the wholesale, retail, and motor trade, and the catering and accommodation industry (0.4 percent).

Sectors which experienced declines were the mining and quarrying industry at -0.3 percent and the agriculture, forestry and fishing industry at -0.1 percent.

Harris said the country had the potential to overcome its problems and to create the millions of jobs needed, with decisive leadership, the right policies and a committed government.

At present, it was lagging behind the rest of the continent.

"The [SA] Reserve Bank recently revised our economic growth forecast for 2013 down to two percent while the rest of Africa is expected to grow at an average rate of 5.5 percent this year," he said.

"Our economic growth is also lagging far behind other developing economies like Thailand at 4.3 percent, Indonesia at 5.9 percent and Chile at 4.6 percent."

-Sapa

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