Economist cautious over government’s economic recovery plan

SABC News Ramaphosa P 1 - Economist cautious over government’s economic recovery plan

Economist Duma Gqubule says he does not forsee a significant change in the manner in which government is expected to manage the country’s finances in the future.

This as President Cyril Ramaphosa prepares to unveil his much anticipated economic reconstruction and recovery plan on Thursday.

The video below looks at expectations from President Ramaphosa’s economic recovery plan:

He will address a Joint Sitting of Parliament on how government will intervene to address the unemployment crisis – as well as avoid a collapse of state-owned enterprises.

Gqubule says he does not have high expectations for the recovery plan.

“I have been following this debate and I have been following all the plans that have been flying around South Africa, maybe 10 of them. If you look at the government plans, South Africans must not hold their breath because the President’s track record, in terms of manning the economy is very poor over the past 20 months.”

“We have had 8/10 quarters of declining investment before COVID-19 and we have 7/10 quarters of declining GDP before COVID-19. What we have seen from the government so far with the stimulus package is absolutely unacceptable,” explains Gqubule.

The video below previews the economic reconstruction and recovery plan:

The South African Federation of Trade Unions (Saftu) says the plan is likely to disappoint workers.

Also, if activities of labour unions in recent months are any indicator of the working class’ expectations, there’s little to be enthusiastic about.

Already, the President’s Economic Advisory Council has advised the government to freeze wage increases for public servants, saying it will cut expenditure and help the economy.

Nonetheless, different sectors of the economy are looking forward to hearing what the plan will be.

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