ECONOMIC OUTLOOK
GDP figures due in conditions of abysmal growth
SA has not achieved three consecutive quarters of growth since 2014-15, marking one of the worst performances among emerging market economies
Although SA is expected to have recorded growth in the second quarter and come out of recession, persistently low economic growth means this will have little positive effect on the economy. This is the backdrop against which Statistics SA will on Tuesday release GDP figures for the second quarter. The country fell into recession following two consecutive quarters of contraction. SA has not achieved three consecutive quarters of growth since 2014-15, marking one of the worst performances among emerging market economies. Fitch Ratings, S&P Global Ratings and Moody’s Investors Service have all cited low economic growth as a concern for SA’s sovereign rating. SA may see a glimmer of growth soon, but Argon Asset Management economist Thabi Leoka said that a slight improvement in performance — such as the one expected on Tuesday — would not have a significant effect on the economy. "It is still low growth … We have been flirting with a recession since 2016, so coming out of it doesn’t mark...
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