South Africa’s President, Cyril Ramaphosa remain optimistic that South Africa will recover from a technical recession brought forward by StatSA on Tuesday. Ramaphosa said that the government is working on a stimulus package to help the South Africa economy bounce back and ease the pain.
President Ramaphosa made this statement off the back of the Forum on China-Africa Cooperation held in China, which he and Chinese President Xi Jinping chaired. South Africa’s second quarter GDP constricted by 0.7%, which could slow the investment that Ramaphosa was hoping to achieve this year.
Ramaphosa pointed out that the agricultural sector experienced late rains which is what contributed to the fall in domestic growth, and that his confident that reports on the next quarter will show growth again and that South Africa will not fall in to a full recession.
The Stimulus package still to be announced is expected to jump start the economy on different levels, lifting the mood and prospect on the economy.