In an article posted on Fin24, FNB advises that South Africans will know on Tuesday whether the country will enter into a technical recession. Gross domestic product (GDP) figures will be released by Stats SA from 11:30 on Tuesday, 4 September 2018 which will reveal our plight.
Stats SA announced a 2.2% contraction in GDP in early June this year and if tomorrow’s announcement indicates a second successive quarter of negative growth, the country will be in a technical recession according to economists.
This will directly impact on President Ramaphosa’s economic reignission plan, which is to secure billions of foreign direct investment in order to grow more jobs.
According to Mamello Matikinca, Chief Economist at FNB, “while the bank believes SA will stave off a technical recession, it will be a ‘close call”.
Share your views with AccountingWeekly.