Trevor Manuel has gone on the record saying that South Africa is not in a recession. He is referring to certain economists saying we are already in a recession, who are pointing to evidence indicating that we are in a recession, despite it not technically being accurate.
Manuel has said that although certain economic factors are there we are not technically in a recession.All the experts are getting rather confusing with everyone eager to voice their own opinion on the matter. ANC President Jacob Zuma has also warned against retrenchments as a kneejerk reaction by businesses.Usually businesses cut jobs when there is trouble on the horizon.
If more people are unemployed there will be even less spending power in the market and will make an economic recovery even more difficult. Zuma also said that business and government should come to an understanding that would encourage and utilise innovative methods to prevent joblosses.
Many people were hoping for an emergency rate cut by early next week but that seems less and less likely as the week progresses. There we had experts on both sides of the fence too, some saying it would be a great idea and would improve our situation immediately and then others who say it would be a terrible idea that would bring negative consequences further down the line.
What do you think? Is South Africa already in a recession?
