What recession

No doubt that South Africa’s unemployment rate, at just over 25%, is very high. No doubt that the country’s inflation rate of 6% is relatively high. No doubt that major economies in Europe, such as Britain, Italy and Greece are experiencing a recession, some more severe than others.

Does all this therefore mean South Africa itself is experiencing a recession? The answer is an absolute NO. The last time South Africa experienced negative GDP growth was in the third quarter of 2009, when the economy shrunk by 2.8%. From quarter four of 2009, to-date, South Africa’s GDP has been growing quarter-on-quarter. What’s more Stats SA projects that South Africa’s GDP will grow by at least 3.2% in 2012. Yes, the rest of the world may be in economic quagmire, but it certainly does not mean that this great country of ours is in a recession. For the most part, South Africa is indeed thriving.