Massive declines in the agricultural, transport and retail sectors have dragged the South African economy into recession after almost a decade of growth.
ANC head for economic transformation Enoch Godongwana said looming economic turmoil was being triggered by and declining growth in fixed capital investment, a persistent current account deficit, and household consumption expenditure that had declined.
South Africa officially entered a technical recession on Tuesday signalling danger for the ANC's election campaign ahead of next years elections.
Godongwana says the technical recession is the result of a prolonged trend of slowing economic growth.
He says government's confident it can turn the situation around.
Government should upscale investing in economic and social infrastructure that include work on public buildings, courthouses, schools, transportation infrastructure, government hospitals, public safety facilities and equipment, water and sewer projects, environmental projects, energy projects, government housing projects and public utilities. So we made a number of areas in our policy statement listing a number of these interventions: "cutting data costs, announcing the spectrum auction".
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