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South Africa GDP growth is an 'illusion' benefiting the few
05 Sep 2024 at 09:17hrs | Views
The Economic Freedom Fighters (EFF) have dismissed the recent GDP growth figures released by Statistics South Africa (Stats SA) as "misleading", accusing the government and financial institutions of creating a false narrative of economic recovery while key sectors continue to struggle.
Stats SA's report indicates that South Africa's economy has grown by 0.4% in the second quarter of 2024, but the EFF argues that this growth has not translated into job creation or real improvements for the majority of South Africans.
In a statement released on Tuesday, the EFF said, "This so-called growth is an entrenchment of market-oriented and financial sector-centred policies that have benefited only a small portion of society, primarily banks.
The people of South Africa should never be hoodwinked into celebrating what must correctly be seen as jobless growth."
According to the party, the finance sector contributed 0.3 percentage points to the growth, while labour-intensive sectors like agriculture, forestry, and mining all declined.
The EFF emphasized that unemployment has risen, citing the latest figures showing a 0.6% increase, amounting to 158,000 more people without jobs.
The party further pointed out that unemployment in the agricultural sector alone rose by 45,000 people during this period, undermining any claims of economic progress.
"The reality is that this growth benefits the capitalist establishment through the financial sector, and is the intended agenda of this very government, which is established by private sector interests to deliver narrow profit maximization for the few at the expense of the majority of South Africans," the EFF said.
The party also highlighted the impact of high interest rates on South Africans, noting that many households are struggling to repay their debts and are at risk of losing their homes and vehicles.
"The financial sector has grown on the back of the suffering of South Africans who are repaying high amounts on their homes, vehicles, and debts, and in many instances, losing these assets to the financial sector because they can no longer afford them," the statement added.
In response to these challenges, the EFF has called on the South African Reserve Bank (SARB) and the Monetary Policy Committee (MPC) to reduce the repo rate by 150 basis points in an effort to ease the cost of living for South Africans.
They argue that the current economic policy framework only serves to enrich the few at the expense of the many, and have warned that continuing down this path will lead to further social unrest and economic inequality.
"The people of South Africa should not be misled by a narrative of economic growth, while they remain unemployed and gripped by poverty.
This growth has not benefited the masses, and those claiming easy victories ought to be careful, as they will be held responsible for the increased unemployment rate, crime rate, and rising cases of sexual assaults and rape," the EFF cautioned.
Stats SA's report indicates that South Africa's economy has grown by 0.4% in the second quarter of 2024, but the EFF argues that this growth has not translated into job creation or real improvements for the majority of South Africans.
In a statement released on Tuesday, the EFF said, "This so-called growth is an entrenchment of market-oriented and financial sector-centred policies that have benefited only a small portion of society, primarily banks.
The people of South Africa should never be hoodwinked into celebrating what must correctly be seen as jobless growth."
According to the party, the finance sector contributed 0.3 percentage points to the growth, while labour-intensive sectors like agriculture, forestry, and mining all declined.
The EFF emphasized that unemployment has risen, citing the latest figures showing a 0.6% increase, amounting to 158,000 more people without jobs.
The party further pointed out that unemployment in the agricultural sector alone rose by 45,000 people during this period, undermining any claims of economic progress.
The party also highlighted the impact of high interest rates on South Africans, noting that many households are struggling to repay their debts and are at risk of losing their homes and vehicles.
"The financial sector has grown on the back of the suffering of South Africans who are repaying high amounts on their homes, vehicles, and debts, and in many instances, losing these assets to the financial sector because they can no longer afford them," the statement added.
In response to these challenges, the EFF has called on the South African Reserve Bank (SARB) and the Monetary Policy Committee (MPC) to reduce the repo rate by 150 basis points in an effort to ease the cost of living for South Africans.
They argue that the current economic policy framework only serves to enrich the few at the expense of the many, and have warned that continuing down this path will lead to further social unrest and economic inequality.
"The people of South Africa should not be misled by a narrative of economic growth, while they remain unemployed and gripped by poverty.
This growth has not benefited the masses, and those claiming easy victories ought to be careful, as they will be held responsible for the increased unemployment rate, crime rate, and rising cases of sexual assaults and rape," the EFF cautioned.
Source - iol
