COSATU welcomes 0.4% GDP growth, cautions against complacency

The Congress of South African Trade Unions (COSATU) has expressed satisfaction with the 0.4% rise in Gross Domestic Product (GDP) in the second quarter of 2024.
While acknowledging the modest nature of the increase, COSATU National Spokesperson, Zanele Sabela, emphasied the positive implications for the economy.

“After years of stagnation, this growth is a welcome sign,” Sabela said.
The initially projected contraction in the first quarter made this uptick even more remarkable, she added.

COSATU attributed the growth to several key factors, notably the steady power supply from Eskom over the past four months.
This stability has provided a crucial foundation for economic activity.

Furthermore, the recent decrease in fuel prices has provided relief to workers and potentially stimulated growth.
Lower fuel costs have a ripple effect, benefiting consumers and businesses alike.
This combination of stable energy supply and reduced fuel prices has contributed to the GDP increase.

However, Sabela cautioned against complacency, highlighting the economy’s fragile nature.
“Government support is crucial to ensure sustained growth and investment,” she stressed.
Despite the encouraging signs, COSATU recognizes that underlying structural issues must be addressed to create a more resilient economy.

To consolidate gains, COSATU urges the government to implement proactive measures.
This includes investing in critical infrastructure, promoting economic diversification, and implementing policies that foster a favorable business environment.
By building on this momentum, South Africa can create a more robust and inclusive economy.

The positive assessment from COSATU comes as a boost to South Africa’s economic outlook.
As the country navigates its economic challenges, the trade union’s emphasis on continued government support underscores the need for collaborative efforts to drive sustainable growth.