Investments / Economy

STANLIB: First quarter GDP slump calls for urgent government action

The recent fall-off in South Africa’s economic performance, reflected in the 3.2% quarter-on-quarter decline in gross domestic product (GDP) in the first quarter of 2019, places enormous pressure on the newly-elected administration. An urgent focus is needed on lifting business confidence, investment and employment.

GDP horror show

Unfortunately, it seems that in terms of economic data, South Africa’s 2019 film has begun in much the same vein as 2018, and could easily be classified within the “horror” genre given heightened fears that South Africa could once again enter a technical recession in the first half of the year.

PPS Investments commentary on 2019 Q1 GDP growth

Domestic growth languished in the first quarter, with the economy shrinking a massive 3.2% - more than double market expectations of 1.5%. Higher frequency economic data during the quarter had been pointing to renewed weakness, but conditions have proven far worse.

Investment community calling for bold moves by Ramaphosa