UASA Media Release: 09 June 2026
Image source: www.statssa.gov.za
Statement by Abigail Moyo, spokesperson of the trade union UASA:
UASA is pleased that the economy grew by 0.5% in the first quarter of the year, up from the previous quarter.
Although this recorded growth does not yet fully reflect the impact of the Middle East conflict on the economic outlook, it is encouraging to see potential for growth amid global economic challenges.
The stronger Gross Domestic Product (GDP) growth came despite the manufacturing industry shrinking by 0.8% over the quarter. There was also a concerning 1.1% decline in gross fixed capital formation (GFCF) with sharp falls in spending on machinery, other equipment and residential buildings.
GFCF represents the money spent on buying and building physical assets, such as equipment and infrastructure, that are needed for the economy to produce more in the future. Various other industries, including finance, agriculture, trade and transport, mining, and communication, also made notable contributions to GDP growth.
While we have yet to fully understand the impact of the drastic fuel price hikes over the past few months, we remain hopeful that continued economic growth will sustain the momentum.
Although interest rates were recently hiked, UASA is optimistic that projected economic growth may still occur, even at a lower rate than expected. Any growth would lower inflation, debt costs, and general costs that are challenging for consumers.
We must protect and ensure sustainability across the sectors that contribute to building our economy. We must advocate for sufficient economic growth and job creation.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.