Mixed re-actions as economy shows signs of picking up

By Ofentse Mokae
23 February 2010

Most economists have been surprised following the announcement by Statistics South Africa that the gross domestic product grew by three-point-two-percent in the fourth quarter of last year.

Most of them forecast growth of about two-and-a-half-percent.

This has led to optimism that the economic turn will be much faster than expected.

Some economists now expect annual GDP growth of over three-percent at the end of this year.

However some in the organised labour industry have expressed certain concerns with regards to the announcement.

The Federation of Unions of South Africa today says even though the GDP shows growth from various industries, the Federation is still very concerned that close to 900 00 jobs were lost last year as a direct result from the global economic crisis.

“Even though we are seeing an uncertain growth pattern of the economy we are concerned that those workers who have lost their jobs will not regain their jobs as the economy grows,” said general secretary Dennis George.

George says FEDUSA certainly welcomes the growth but says government now needs to take a firm stance on job creation as indicated in the National Budget by Minister Pravin Gordhan.