Stats SA has released that South Africa has managed to break out of the technical recession announced in the previous quarter, yet experts believe the recession is only over ‘technically’.
Statistician-general Pali Lehohla announced the second quarter gross domestic product figures at a briefing in Pretoria on Tuesday, showing that the economy has grown both quarter-on-quarter and year-on-year.
The news, however, has been welcomed with a pinch of salt by some pundits who surmise that the recession has yet to run its course.
“The reality is that South Africa has experienced an “economic drought” since about 2011”, said Chief Economist and Advisory Partner from Citadel Wealth Management, Maarten Ackerman.
The recession came into play after a negative growth was experienced in 2016 and the first quarter of 2017.
Ackerman says the South African economy has long been left behind by the global growth trend of 2%.
According to him SA’s fiscal position remains at risk of becoming unsustainable. Confidence and political stability will be required in order to really surpass this dry-spell.