ECONOMY
GAVIN KEETON: Measured policies needed to sustain tenuous growth
The South African economy grew at an annualised 3.1% in the fourth quarter of 2017. This helped lift growth to 1.3% for 2017 as a whole. The pace of growth in the quarter was much faster than expected. The government, as well as many commentators, had expected growth in 2017 to be only about 1%. The unexpected acceleration in growth is very welcome. Increasing the size of the economy is the only way to meaningfully create jobs and reduce poverty. Faster growth over time will generate more tax revenue, allowing the state to reduce its high debt. It will also allow more spending in critical areas such as education. But it is too soon to say the economy is out of the doldrums. The recent pace of growth will not be sustained without supportive policy changes. The reason for caution lies in understanding what the announced 3.1% "annualised" growth in quarter four means. When they make a statement of this kind, economists are calculating what growth during one quarter would, if sustained,...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.