Cape Town — South Africa’s GDP grew by 0.4% in Q2 of 2024, and despite this improvement, South Africa remains the worst-performing country among its global peers.
The GDP’s improvement was due to the growth of the finance, real estate and business sectors, which grew by 1.3%, contributing to an overall improvement of 0.3%.
However, financial economist, Dr Iraj Abedien, told Newzroom Afrika that South Africa still lags behind many of its peers when it comes to GDP.
“In the international setting, we must begin on the continent. South Africa is one of the worst-performing on the continent of Africa, which as the biggest continent and fully industrialised, is an embarrassing position to be in,” he said.
He said that South Africa is pulling the continent’s growth and prosperity down. He compared it to other emerging economies such as India, Brazil and Peru, which are growing at three times the rate of South Africa.
“Not because they are doing so well, but because we are doing so badly. In the global, continental and Slavic position, we are not doing well,” he concluded.
Economist Dr Iraj Abedian tells @Katlego_Msomi that despite South Africa’s 0.4% GDP growth in the second quarter, the country remains the worst performing among its global peers that are growing at three times the current rate.
Watch: https://t.co/I0ToE6n6d4 pic.twitter.com/K1oghDIjjx
— Newzroom Afrika (@Newzroom405) September 4, 2024
However, according to SA Gov News, the government has welcomed the country’s positive growth, especially considering it failed to grow after the first quarter.
Acting government spokesperson, Nomonde Mnukwa, said the second quarter’s economic growth was a clear indication that South Africa’s economy is on a solid path to recovery.
“The positive trajectory also speaks to the effectiveness of the measures that have been implemented to support recovery and growth. The absence of load shedding has played a crucial role in revitalising key sectors, particularly the electricity, gas, and water supply industry,” she said.
Mnukwa said that the government remains committed to implementing policies that will accelerate growth in South Africa and benefit all South Africans. She acknowledged the challenges in the agriculture, mining and forestry industries but said work has been done to restore growth.
Mnukwa said the government continues to support and foster an environment that encourages sustainable economic development.
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Compiled by Matthew Petersen
