EconomistDuma Gqubule has urged government to open its taps into the economy in order to aid its recovery.
He has called the 4.9% annual GDP increase in 2021 an anomaly, saying that the economy will revert back to pre-pandemic low growth rates.
Gqubule added that the only reason the economy grew by such a high number is because there was no hard lockdown last year, and the growth was measured from a low base in 2020.
“Our government has got this insane logic, that government spending must decline during the worst depression in almost a century and government refuse to spend money during and after covid. The only solution to this crisis is for the government to open the taps and start spending. I don’t know why that is so difficult to understand from the government.”
The South African #economy grew by 1,2% in Q4:2021 (October–December), taking the annual rate for 2021 to 4,9%. Acting Chief Director, Robert Mabunda, will be unpacking the latest #GDP figures on @CapricornFM at 19:15.
— Stats SA (@StatsSA) March 8, 2022