Bongani Zitha |
The South African business market has once again taken a hard knock. The Gross Domestic Product (GDP) of SA has seen a decline due to the hard Lockdown the country went through as a result of the global pandemic Covid-19.
There has been a 16,4% contraction in the second quarter in the GDP of South Africa.
Present Cyril Ramaphosa said the decline in South Africa’s GDP in the second quarter shows a severe impact of the global Corona virus pandemic. The president has also urged South Africans to do all they can to help rebuild the country’s declining economy.
There are processes which are in phase to help boost economic recovery. The first one is a Social Compact which identifies areas of convergence and provides a basis for joint action by all social partners.
The second process entails the government finalizing it’s Economic recovery strategy which will also focus on the Social Compact. The final process is the president’s Employment stimulus which is said to take shape in the following months.
President Ramaphosa also had this to say- “Now is the time to act quickly and boldly to place South Africa on a rapid growth trajectory. We cannot continue with business as usual. We will use this moment of crisis to build a new economy, and unleash South Africa’s true potential.”