EFF STATEMENT 2018 FIRST QUARTER ECONOMIC DECLINE
Wednesday, June 6, 2018
The EFF notes the first quarter economic decline by 2.2% on a quarter-on-quarter basis compared to the much celebrated 3.1% growth in the fourth quarter of 2017 as reported by Stats SA. Majority of the sectors i.e. agriculture, mining, manufacturing, construction and trade have recorded a negative growth.
The EFF warned against a misleading campaign to celebrate 2017 fourth quarter growth, which was paraded by the media and the ruling party as a sign that the economy is recovering. The reality is that, economically, the fourth quarter of every year where there is good rain, agriculture will perform well. It was its strong performance that helped keep the economy afloat, because trade and other services tend to do well in December when consumers spend their hard earned cash. Thus, it is normal in each year.
However, the reality is, there has not been any change in the fundamentals of South Africa’s economy. In fact all indications are pointing to a downward spiral into further crisis. The first quarter decline in the economy is a true and clear indication of where the economy is going; possibly towards recording negative growth as it was the case last year.
Earlier in the year, the budget was presented with a shocking revenue collection of more than R40 billion and the Treasury has failed to demonstrate how and where the money is going to come from. Instead, it is workers, the poor and unemployed and people living with disability who are at the receiving end of the economic crisis and poor performance by this government. The price of food has increase drastically since the misguided increase on VAT to 15% in April.
Unless there is a drastic shift led by state intervention in the economy to reinvigorate sustainable manufacturing of clothing, technology gadgets, agro-processing and scientific innovation which will give birth to new industries, South Africa is likely to experience recession in the coming months and years.
The EFF long warned of the misguided and unsubstantiated praising of Cyril Ramaphosa, particularly because during his state of nation address, he failed to present any practical programs to take the economy forward. Instead he made wild commitments of conferences, summits and overseas envoys that have no impact on improving peoples lives.
He has demonstrated an inability for creativity and generating new ideas that will change South Africa’s economic configuration. Yet the man and his government operate under the greatest media euphoria ever seen since the days of Nelson Mandela.
In an environment of so great an economic uncertainly and degeneration, we all should be most critical of those in power. We all should demand the greatest demonstration from them that they can save the country from collapse.
If Zuma presided over the worst state corruption project, all projections point to the reality that Ramaphosa will preside over the greatest economic recession of the democratic years.
Statement issued by the Economic Freedom Fighters, 6 June 2018
