Twitter weighs in on recession: 'It's a reflection of years of bad decisions'

04 March 2020 - 10:17 By Unathi Nkanjeni
SA's economy declined by 1.4% from a revised contraction of 0.8% in the previous quarter.
SA's economy declined by 1.4% from a revised contraction of 0.8% in the previous quarter.
Image: Gallo Images/ IStock

Data released by Stats SA on Tuesday showed the South African economy entered its second recession in two years in the fourth quarter of last year.

The slump in SA's economy has sparked a debate online, as many worry about the future.

According to new GDP numbers, the economy declined by 1.4% from a revised contraction of 0.8% in the previous quarter.

It managed growth of just 0.2%, down from 2018’s 0.8%.

Stats SA said this marks the sixth consecutive year that SA’s economy has grown below 2% and the lowest level since 2009, when the economy contracted by 1.5%.

South Africa has entered its second recession in two years, data showed on March 3 2020. Stats SA reported a 1.4% decrease in the economy in December last year, while 2020's first quarter recorded a 0.8% decrease. Here's what you need to know.

Briefing the media in Tuynhuys, Cape Town, President Cyril Ramaphosa said South Africans should not be shocked by the recession because the signs were there.

He said several factors led to the technical recession. These included poor business and consumer confidence, and lack of production due to Eskom's load-shedding.

“This technical recession has been there for all of us to see. It's been the load-shedding and the impact it has on production.”

On social media, finance minister Tito Mboweni said: “The SA economy is strong enough to recover. We will work harder together”.

Many said while the recession was “predictable”, it was “naive and misleading” of the president to blame it only on load-shedding.

Here is a snapshot of what people had to say:


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