On Tuesday, the EFF released a statement following Statistics SA’s announcement that SA had entered a technical recession. In that statement, the EFF made the correct critique that this recession, alongside SA’s other economic woes — unemployment, poverty and underdevelopment — must be blamed squarely on white monopoly capital. In this piece, we shall expand on this view. It is generally acknowledged that recession is a period of negative growth in economic activity, particularly if such occurs in two consecutive quarters in a country’s GDP. To be specific, it is technical because it does not consider a comprehensive set of measures such as employment and income. Therefore, the second quarter negative growth of 0.7% after the 2.6% negative growth in the first quarter led us into a recession. According to the 2018 second quarter labour survey, unemployment was recorded at 27.7%, an increase from 26.7% in the first quarter. Also, the Poverty Trends in SA report by Statistics SA, which...

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 articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now