Finance minister Nhlanha Nene says he is due to present economic structural reforms and a stimulus package that he believes will pull the economy out of a technical recession.This is after it emerged that the economy had slipped into its first technical recession in nine years, following Statistics SA’s announcement on Tuesday that the country’s GDP shrank 0.7% in the second quarter of 2018. The GDP drop followed a revised fall of 2.6% in the first quarter of 2018.Nene said that while the government was disappointed by the latest economic figures‚ he was confident the economic structural reforms and measures to stimulate the economy — due to be tabled in parliament in October — would help pull SA out of the woods. The medium-term budget policy statement will outline the government’s economic blueprint and spending plans for the next three years.Nene also conceded that this year’s VAT increase had taken money out of the pockets of citizens‚ with a decline in household consumption cit...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.