Cabinet has welcomed the positive economic indicators following the slight growth in the country’s gross domestic product (GDP), slowing inflation and the drop in the repo rate.
This is according to Minister in the Presidency, Khumbudzo Ntshavheni, who briefed the media on the outcomes of the Cabinet meeting held this Wednesday.
South Africa’s GDP increased by 0.4% during the second quarter of 2024 following a 0.0% growth in the first quarter. Additionally, inflation dropped to 4.4% in August from 4.6% in July while the repo rate also dropped for the first time since 2020 to reach 8%.
“We are seeing positive economic indicators and therefor Cabinet welcomed the positive economic indicators as per the data released by Statistics South Africa. This increase [of the GDP] was influenced by the improvement in the manufacturing sector of 1.7% growth year on year. The revival of the manufacturing sector is a critical success factor in the re-industrialisation of South Africa.
“There has been a consistent improvement in the CPI since March 2024. We must also extend our appreciation to the cut on the interest rate by 25 basis points…that is [a] welcome[d] relief to all South Africans,” the Minister said at Friday’s briefing.
READ | Government welcomes repo rate cut
State owned companies
Ntshavheni said steady progress in revitalising and improving the performance of State owned companies (SOCs) is welcomed.
She added that this will “positively contribute to South Africa’s industrialisation drive”.
“In this regard, it is worth noting that Denel posted a profit of R390 million before interest and tax for the 2023/24 financial year with irregular expenditure declining by a whopping 98%.
“Prasa [Passenger Rail Agency of South Africa] is making strong headway in getting passenger trains back on track with 31 of the 40 rail corridors now operational.
“Eskom’s recovery plan continues to deliver positive outcomes with load shedding remaining suspended for more than 175 days as of the 18th of September 2024,” she said. – SAnews.gov.za
