CURRENTLY ON AIR ⇒
  • Nazam Hour
    Saturday, 5:05 pm - 6:00 pm
    [ - ]

feedback@radioislam.org.za

logo


((( Listen Live )))))
Radio Islam Logo


South Africa’s economy avoids recession

Sameera Casmod | sameerac@radioislam.co.za
06 March 2024 | 12:15 p.m. SAST
1 minute read

Photo: Getty Images

A recent StatsSA statement shows an increase of 0,1% in South Africa’s economic growth from the third to the fourth quarter of 2023. This slight uptick, in line with expectations, was largely attributed to ESKOM’s improved power generation in the final quarter of last year.

Lumkile Mondi, a lecturer at Wits Business School, explains that a recession is a technical term used by economists and is characterised by consecutive quarters of negative growth in an economy.

Technical recessions, indicative of economic difficulty, have ripple effects on businesses, employees, and government revenue, as seen in South Africa.

“When there’s a technical recession, it means that basically our productivity or our output is declining, meaning that many of our firms are under a lot of stress, and therefore there is loss of revenue and profit for owners… For employees and even the South African Revenue Services (SARS), it means that the employees are going to lose their jobs because profits are not being made, therefore less tax to SARS,” Mondi explains.

The economic downturn is exacerbated by reduced spending power in the retail sector, which affects both suppliers and retailers as consumer demand dwindles. Technical recessions also result in a need for increased efforts to stimulate investment and create opportunities.

Mondi expresses cautious optimism for South Africa’s future economic growth, which is affected by the turbulent global environment. Mondi explains that international peace agreements will potentially improve South Africa’s political and economic environment through increased commodity prices and reduced interest rates.

Listen to the full interview on Sabaahul Muslim with Moulana Sulaimaan Ravat.

 

ADVERTISE HERE

Prime Spot!!!

Contact:
advertisingadmin@radioislam.co.za 

Related Articles

‘Probably Ramaphosa’s Strongest Sona’: Rise Mzansi

‘Probably Ramaphosa’s Strongest Sona’: Rise Mzansi

Neelam Rahim | neelam@radioislam.co.za 3-minute read 08 February 2025 | 12:25 CAT President Cyril Ramaphosa delivered his first State of the Nation Address (SONA) under the seventh administration and the Government of National Unity (GNU), setting the tone for the...

read more
The ASRI Report

The ASRI Report

Sameera Casmod | sameerac@radioislam.co.za 7 February 2025 | 11:47 CAT 4-minute read President Cyril Ramaphosa last night delivered the first State of the Nation Address (SONA) under the Government of National Unity (GNU). The SONA, which provides the strategic...

read more

Subscribe to our Newsletter

0 Comments