S. African economy faring better than many countries

• Source: Xinhua
• [10:07 May 27 2009]
• Comments

South Africa has fared better than many other countries during the global financial crisis, the African National Congress (ANC) said on Tuesday.

Its comments came after the data was released showing South Africa to be in recession.

"The decline in GDP in the first quarter of 2009, following the contraction in the last quarter of 2008, is evidence of the impact of the global economic crisis on our country," said African National Congress spokeswoman Jessie Duarte in a statement.

"It shows that the South African economy is not immune from international developments. Despite the drop in growth, South Africa has fared better than many other countries."

On Tuesday, the data released by Statistics SA showed that South Africa had lurched into a recession for the first time in 17 years.

According to the Pretoria-based agency, Gross Domestic Product (GDP) for the first quarter of 2009 tumbled an annualised rate of 6.4 percent after declining 1.8 percent in the final quarter of 2008.

Economists said two consecutive quarters of negative growth meant an economy was technically in recession.

"We need to hold our economic course, while taking steps to improve our economic position," said Duarte.

She said the ANC would be accelerating and expanding its investment in public infrastructure.

"It will step up a massive programme on expanded public works linked to infrastructure and meeting social needs with home-based care, school cleaning and renovation, community gardens, removal of alien vegetation, tree planting and school feeding."

Duarte said the ANC-led government would ensure that development finance institutions had clear and "truly developmental" mandates.

This would help achieve decent work and sustainable livelihoods for South Africans, Duarte said.