SA will narrowly escape recession, says Reserve Bank governor Lesetja Kganyago
SA is expected to narrowly escape a recession, according to Reserve Bank governor Lesetja Kganyago.Speaking at the Bank’s annual general meeting on Friday, Kganyago said data for the second quarter suggests the economy will make a modest improvement and avoid a second consecutive quarter of contraction, which would place SA in recession.Last week, the governor announced that the Bank’s growth outlook had been revised down from 1.7% to 1.2% for 2018.However, he warned: "At these growth levels, we cannot expect to make appreciable inroads into the unemployment problem of the country."The quarterly labour force survey, which will be released by Stats SA next week, is expected to show unemployment remains uncomfortably high at 26.7%."As the MPC [the Reserve Bank’s monetary policy committee] has emphasised on numerous occasions, a firm commitment by government to credible structural policy initiatives and implementation is required to make an appreciable impact on employment and potentia...
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