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ANC worries over poor economic growth

Cape Town - The negative growth for the first quarter of 2014 must be speedily arrested, said ANC secretary general Gwede Mantashe on Sunday.

Mantashe was speaking at the press briefing following a meeting with National Executive Committee (NEC), which is the highest decision making organ of the ANC.

The NEC met over the past three days to chart a way forward for the next five years.

"The 0.6% negative growth for the first quarter of 2014 must be speedily arrested," Mantashe said.

He blamed the prolonged strike in the platinum sector for dragging the economy down.

"The five months strike in the platinum belt was seen as a major contributing factor."

Mantashe said that the ANC cautioned Mineral Resources Minister Ngoako Ramatlhodi not to get too involved in the strike talks because it was a labour issue.

See how the press briefing unfolded.

On Saturday Ramatlhodi warned that he will pull out of negotiations if parties do not come to an agreement next week.

Recently released economic data painted a worrying picture of the economy.

The decline in first-quarter Gross Domestic Product, the first quarterly contraction since a recession five years ago, has sparked fears that the economy could be heading for a recession.

Added to this, year-on-year (y/y) new vehicle sales declined by 9.2% in May, the purchasing managers index dropped, there has been a dramatic rise in producer inflation and the trade deficit widened.

Statistics SA also reported on Friday that the youth unemployment rate jumped to 36.1% from 32.7% between 2008 and 2014.  It has been consistently higher than that of adults since the 2008 recession.

 - Fin24


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