Economist urges government to “open its taps” into the economy

EconomistDuma Gqubule has urged government to open its taps into the economy in order to aid its recovery.

He has called the 4.9% annual GDP increase in 2021 an anomaly, saying that the economy will revert back to pre-pandemic low growth rates.

Gqubule added that the only reason the economy grew by such a high number is because there was no hard lockdown last year, and the growth was measured from a low base in 2020.

“Our government has got this insane logic, that government spending must decline during the worst depression in almost a century and government refuse to spend money during and after covid. The only solution to this crisis is for the government to open the taps and start spending. I don’t know why that is so difficult to understand from the government.”

The South African #economy grew by 1,2% in Q4:2021 (October–December), taking the annual rate for 2021 to 4,9%. Acting Chief Director, Robert Mabunda, will be unpacking the latest #GDP figures on @CapricornFM at 19:15.

More here: https://t.co/Ldd9EbiyRP#StatsSA pic.twitter.com/ilPL54HIBR

— Stats SA (@StatsSA) March 8, 2022