MyZA

News, Directory, Events and Other Stuff

You are here: Home / News / Cabinet notes decline in GDP by 0.3% in third quarter of 2024

Cabinet notes decline in GDP by 0.3% in third quarter of 2024

Cabinet notes decline in GDP by 0.3% in third quarter of 2024

Despite the third quarter gross domestic product (GDP) decline, Cabinet has welcomed the positive economic outlook by the International Monetary Fund (IMF) and rating agency Standard & Poor’s (S&P), as the impact of the implemented Operation Vulindlela coordinated reforms have started to bear fruit.

This is according to Minister in the Presidency Khumbudzo Ntshavheni, who briefed the media on the outcomes of the Cabinet meeting held on Wednesday, 4 December.

S&P revised South Africa’s outlook to “positive” from “stable” in November this year, citing plans for accelerated economic reforms by the new government of national unity and a pickup in private investments.

Ntshavheni said Cabinet noted the decline in GDP by 0.3% in the third quarter of 2024, with the largest decline of 28.8% recorded in the agriculture, forestry and fishing, which may indicate the impact of drought. 

Statistics South Africa (Stats SA) has indicated that the severe drought in 2024 caused a 0.3% decline in the country’s GDP in the third quarter. 

Meanwhile, S&P also upgraded Eskom’s long-term global-scale foreign and local currency ratings from stable to positive, which indicates the progress made by government in strengthening Eskom’s financial and operational foundation through the work of the National Energy Crisis Committee (NECOM), the Eskom Board and Executive team.

“Cabinet further welcomed the decision by the South African Reserve Bank to cut the repo rate by another 25 basis points from 8% to 7.75%,” said Ntshavheni. 

The Executive believes that the lower interest rate will continue to ease the burden on highly indebted consumers and mitigate the high cost of living, while also encouraging businesses to expand their operations to further stimulate economic activity. 

Investment 

Cabinet has welcomed the announcement by Saudi Arabia to invest R9.5 billion to build a platinum smelter and base metals refinery in the Waterberg in Limpopo. 

“This new investment is a strong vote of confidence in our nation and builds on the first phase of our investment mobilisation drive under the sixth administration that saw our nation surpass its investment target by 26% to reach a total of R1.51 trillion in investment pledges,” said Ntshavheni.

The Minister said South Africa is now targeting R2 trillion in new investments over another five years between 2023 and 2028. 

SAA

In addition, the Executive has commended South African Airways’ (SAA) strong performance, highlighting the airline’s significant progress towards financial sustainability. 

“For the first time since 2012, the SAA has recorded a net profit of R252 million for the 2022/23 financial year, and group revenue increased from R2 billion to R5.7 billion.

“Remarkably, SAA achieved this milestone while operating with only six to eight aircraft across nine destinations at the beginning of the 2022/23 financial year,” Ntshavheni said, adding that the airline has since doubled its fleet, launched intercontinental routes, and increased its network to 16 destinations. – SAnews.gov.za
 

Gabisile
Thu, 12/05/2024 – 15:44

110 views

Despite the third quarter gross domestic product (GDP) decline, Cabinet has welcomed the positive economic outlook by the International Monetary Fund (IMF) and rating agency Standard & Poor’s (S&P), as the impact of the implemented Operation Vulindlela coordinated reforms have started to bear fruit.

This is according to Minister in the Presidency Khumbudzo Ntshavheni, who briefed the media on the outcomes of the Cabinet meeting held on Wednesday, 4 December.

S&P revised South Africa’s outlook to “positive” from “stable” in November this year, citing plans for accelerated economic reforms by the new government of national unity and a pickup in private investments.

Ntshavheni said Cabinet noted the decline in GDP by 0.3% in the third quarter of 2024, with the largest decline of 28.8% recorded in the agriculture, forestry and fishing, which may indicate the impact of drought. 

Statistics South Africa (Stats SA) has indicated that the severe drought in 2024 caused a 0.3% decline in the country’s GDP in the third quarter. 

Meanwhile, S&P also upgraded Eskom’s long-term global-scale foreign and local currency ratings from stable to positive, which indicates the progress made by government in strengthening Eskom’s financial and operational foundation through the work of the National Energy Crisis Committee (NECOM), the Eskom Board and Executive team.

“Cabinet further welcomed the decision by the South African Reserve Bank to cut the repo rate by another 25 basis points from 8% to 7.75%,” said Ntshavheni. 

The Executive believes that the lower interest rate will continue to ease the burden on highly indebted consumers and mitigate the high cost of living, while also encouraging businesses to expand their operations to further stimulate economic activity. 

Investment 

Cabinet has welcomed the announcement by Saudi Arabia to invest R9.5 billion to build a platinum smelter and base metals refinery in the Waterberg in Limpopo. 

“This new investment is a strong vote of confidence in our nation and builds on the first phase of our investment mobilisation drive under the sixth administration that saw our nation surpass its investment target by 26% to reach a total of R1.51 trillion in investment pledges,” said Ntshavheni.

The Minister said South Africa is now targeting R2 trillion in new investments over another five years between 2023 and 2028. 

SAA

In addition, the Executive has commended South African Airways’ (SAA) strong performance, highlighting the airline’s significant progress towards financial sustainability. 

“For the first time since 2012, the SAA has recorded a net profit of R252 million for the 2022/23 financial year, and group revenue increased from R2 billion to R5.7 billion.

“Remarkably, SAA achieved this milestone while operating with only six to eight aircraft across nine destinations at the beginning of the 2022/23 financial year,” Ntshavheni said, adding that the airline has since doubled its fleet, launched intercontinental routes, and increased its network to 16 destinations. – SAnews.gov.za
 

Watch a Cabinet notes decline in GDP by 0.3% in third quarter of 2024 related video:

Stunning South Africa:

Have you visited MyPR?

MyPR.co.za offers free to publish press releases for your news site, blog or offline publication. Use the handy REPUBLISH facility or the Full Text RSS Feeds or just copy and paste.

Straton Electrical | Straton Solar | Straton Prepaid | Straton Plumbing | Straton IoT | Straton eBikes | BA Systems | Mbane Contracting | Reach Trust

Category: Tag: , , , , , , , , , , , , , , ,

If you feel strongly about this article then feel free to send MyZA a ‘Letter to the Editor’ using the submission form below:

Letter to the Editor

This field is for validation purposes and should be left unchanged.
If this is in response to an article please include that article title here or as the lead in for the first paragraph of your Letter below.

Separate tags with commas

Localise your letter by naming the city your words are about. Add relevant words describing your subject. Single comma separated words of no more than 5
Your Name(Required)
Your Name will be linked to the website below.
Your personal, business or social media web site
Choose NO to not set up a user account on MyZA. User Accounts will allow you to submit letters under your own Author Name

3 Latest Letters to the Editor:

  • Fun South African fact

    Dear Editor Fun South African fact: towns like Franschhoek and Stellenbosch are home to world-class wine farms set in stunning, scenic surroundings. Regards Aressa Smith In Response to/From: Luxury Properties Seized in New Lottery Crackdown

  • Condolences on the Passing of Lusanda Dumke

    Statement by Leander Kruger MPL – DA Buffalo City Constituency Leader: The Democratic Alliance in Buffalo City Metropolitan Municipality mourns the passing of Springbok Women’s rugby player and Mdantsane trailblazer, Lusanda Dumke, who lost her battle with cancer at the age of 28. South Africa has lost an exceptional athlete, a leader, and a source…

  • Rape Kits Delivered, But…

    Statement by Nicholas Gotsell MP – DA NCOP Member on Security & Justice: The DA can confirm that 2 840 rape kits arrived in Cape Town on Monday, following sustained DA oversight and pressure after multiple police stations across the Western Cape were found to be without this critical forensic evidence tool. While this delivery…

Reader Interactions

Comments

  1. A boer went to the appliance store sale and found a bargain. \”I would like to buy this TV,\” hetold the salesman. \”Sorry, we don\’t sell to boere,\” the salesman replied. He hurried home, took a shower, changed his clothes and combed his hair, then came back and again told the salesman \”I would like to buy this TV.\” \”Sorry, we don\’t sell to boere,\” the salesman replied. \”Bliksem, he recognized me,\” he thought. So he went for a complete disguise this time, haircut and new color, shaved off the baard, suit and tie, fake glasses, then waited a few days before he again approached the salesman. \”I would like to buy this TV.\” Sorry, we don\’t sell to boere,\” the salesman replied. Frustrated, he exclaimed \”Jislaaik, man! How do you know I\’m a boer?\”\”Because that\’s a microwave,\” the salesman replied.

  2. Fun South African Fact: Table Mountain in Cape Town is believed to be one of the oldest mountains in the world and one of the planet’s 12 main energy centres, radiating magnetic, electric or spiritual energy.