Mabuza insists that there’s no recession

Deputy President David Mabuza does not agree that the economy is in a technical recession.

Mabuza made this assertion in the National Assembly during oral question time with MPs on Wednesday.

This is despite Stats SA reporting last week that the economy had entered its first technical recession in nine years after gross domestic product shrank by 0.7% in the second quarter of 2018.

The GDP drop followed a revised fall of 2.6% in the first quarter of 2018.

But the country’s No 2, formerly premier of Mpumalanga‚ begs to differ‚ saying there had not been “a very comprehensive” assessment.

“We’ve noticed the current decline. I don’t probably agree with those who are saying we are in technical recession‚” Mabuza said.

While the economy was refusing to grow‚ he said, it had not entered a recession.

“I don’t [agree] because we’ve not taken a very comprehensive picture,” he said

“We’re taking quarter-byquarter statistics.

“We’ve not taken the overall statistics over a period.

“But I’m confident that we’re going to reverse this tide and I am sure the president [Cyril Ramaphosa] will make a few announcements on how [the] government [will] intervene in this situation because it’s our responsibility to respond to [it].”

Mabuza also dismissed suggestions by MPs from the DA and COPE that “irrational” policies like land expropriation without compensation and the nationalisation of the SA Reserve Bank were to blame for the economy’s poor state.

“I want to dismiss the [idea] that land expropriation accounts for this situation or is scaring investors,” he said.

“We’ve said again and again that land expropriation is going to happen in a very responsible way.

“We’re not intending to disrupt agricultural production.” –