SOUTH AFRICA’S RULING PARTY URGES GOVT TO IMPLEMENT ECONOMIC RECOVERY PLAN

JOHANNESBURG– As South Africa slips into a recession, the African National Congress (ANC), the ruling party, has urged the government to move with speed in implementing its economic recovery plan.

On Tuesday, Statistics South Africa disclosed that the economy contracted by 0.7 per cent in the second quarter of this year, after positive negative growth of 2.6 per cent in the first quarter, fulfilling the widely recognized indicator of recession of two (or more) consecutive quarters of negative growth.

The governing party had proposed a number of policy interventions, including tax credits for companies which invest in sustainable job creation; utilizing government’s procurement muscle to localise industries; reducing regulatory red tape; and investing in massive projects such as road infrastructure.

The Chairperson of the ANC’s sub-committee on economic transformation, Enoch Godongwana, said here Wednesday that the ANC reiterateds the call it made at the party’s Lekgotla in July.

The ANC-led government must take immediate, concrete and bold steps to lift the rate of growth and its inclusivity by activating macro-economic policy tools, institutional efficiencies and specific sector interventions as central instruments to mitigate the effects of a contraction in economic activity, he said.

This requires that there be a significant difference in the aggressiveness and approach through which recovery measures are implemented by government. Specifically, the ‘stimulus package’ must be activated immediately.

Source: NAM NEWS NETWORK

SOUTH AFRICA’S RULING PARTY URGES GOVT TO IMPLEMENT ECONOMIC RECOVERY PLAN

JOHANNESBURG– As South Africa slips into a recession, the African National Congress (ANC), the ruling party, has urged the government to move with speed in implementing its economic recovery plan.

On Tuesday, Statistics South Africa disclosed that the economy contracted by 0.7 per cent in the second quarter of this year, after positive negative growth of 2.6 per cent in the first quarter, fulfilling the widely recognized indicator of recession of two (or more) consecutive quarters of negative growth.

The governing party had proposed a number of policy interventions, including tax credits for companies which invest in sustainable job creation; utilizing government’s procurement muscle to localise industries; reducing regulatory red tape; and investing in massive projects such as road infrastructure.

The Chairperson of the ANC’s sub-committee on economic transformation, Enoch Godongwana, said here Wednesday that the ANC reiterateds the call it made at the party’s Lekgotla in July.

The ANC-led government must take immediate, concrete and bold steps to lift the rate of growth and its inclusivity by activating macro-economic policy tools, institutional efficiencies and specific sector interventions as central instruments to mitigate the effects of a contraction in economic activity, he said.

This requires that there be a significant difference in the aggressiveness and approach through which recovery measures are implemented by government. Specifically, the ‘stimulus package’ must be activated immediately.

Source: NAM NEWS NETWORK