The economy rebounded relatively strong with growth of 3.1% in the second quarter of 2019 (Q2 2019) following a sharp contraction in Q1 2019, as announced by Stats SA today.
Although UASA is pleased that the economy is back to growth in Q2 2019 and that a recession could be avoided, it seems that despite the stronger than expected growth it was unable to provide strong job growth. This is confirmed by earlier labour market statistics by Stats SA showing that the economy managed to create only 21 000 new jobs in Q2 2019 compared to Q1 2019.
Most of the growth in Q2 2019 is clearly due to the low base in Q1 2019, as well as the end to a load-shedding spurt and the end of the gold mine strikes, among other factors.
The economy needs to extend the growth in investment as a catalyst for stronger growth and job creation – and lower interest rates can assist in this, as it will make a number of projects investable. However, this can only happen if the government takes decisive action to address and bring to an immediate end the current spate of destructive violence and looting that has taken over the country.
Unless there is clear action and communication from government on how they are going to restore order, we might as well kiss any kind of growth goodbye.
Fuel price increase
Fuel prices will increase as from midnight tonight in another blow to South African workers’ hard-earned money.
Petrol will increase by 11c per litre for both 93 and 95, diesel by 26c per litre, and illuminating paraffin by 24c per litre wholesale.
The main reason given for the increase is the weak rand against the US dollar.
UASA urges its members and other workers to pull their belts tight and hang on in these difficult economic times. Stay away from debt and try to work with the money you have.
For further enquiries or to set up a personal interview, contact Stanford Mazhindu at 074 978 3415.