Technical recession unlikely after first quarter GDP contraction - experts | IOL Business Report

JOHANNESBURG - Although it was not impossible, it was unlikely that South Africa would plunge into a technical recession in the second quarter of 2019 according to Dawie Roodt, Chief Economist at the Efficient Group following the massive 3.2% contraction in the economy in Q1.

It was also vitally important to reduce the government’s wage bill to redeploy that money to stimulate the small and medium business sectors which was where real job creation should be taking place. “All of the main economic indicators that we track show that things are going to get a lot more difficult before there is any chance of light at the end of the tunnel.

Roets said for most South African consumers, budgets were already stretched to the limit and it is difficult to see where the money was going to come from to deal with the latest round of price increases that are going to follow hot on the heels of the latest fuel price increase.

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