Economic growth collapses: highlights failure of government's economic policies

GDP growth statistics released today by StatsSA reveal that South Africa's economic growth has collapsed to 0.9% in the first quarter of 2013. This means we are completely out-of-step with growth rates in developing economies like Thailand (5,4%), Indonesia (6%) and Chile (4,1%). In fact, we are now growing slower than several embattled first world economies like the United States (1,8%) and Canada (1,1%).

This is the strongest indication yet that this government has the wrong economic policies and lacks the leadership to implement reforms that will grow the economy and create the jobs South Africa needs. President Zuma's government has only taken us from one scandal to the next, when it should have been putting in place growth-oriented policies such as those set out in the DA's Plan for Growth and Jobs.

The current economic performance of developing countries around the world shows that it is possible to achieve high growth rates today. African countries in particular are expected to achieve exceptionally high growth this year. According to the African Economic Outlook Report Ghana will grow at 7.1%, Mozambique at 7.4% and Zambia at 7.3% in 2013. We are confident that, with the right policies and strong leadership, South Africa has the potential to achieve similar growth rates.

The DA's top priorities remain growing the economy and creating jobs. The GDP figures released today are a reminder of how this government is failing to prioritise either of these. Next year's elections will allow South Africans an opportunity to show their disappointment with this government by voting for a party with a plan to grow the economy and create the jobs needed to undo the legacy of Apartheid.

Statement issued by Tim Harris MP, DA Shadow Minister of Finance, May 28 2013

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