The Congress of South African Trade Unions (COSATU) remains deeply unimpressed with the latest Gross Domestic Product (GDP) growth report recording a 0.5% expansion for the first quarter of 2026.

Whilst appreciating that the economy has posted its sixth consecutive gain, it is still far from enough to reach the 3% plus needed to generate a continuous and meaningful fall in our stubbornly high unemployment rate of 43.7%, itself having depressingly risen by 1.7% over the last quarter. 

We had hoped that 2026 would have seen the economy turning the corner after having been stuck at 1% growth for more than a decade.

COSATU acknowledges recent positive trends in the economy and state under the African National Congress led government from overcoming loadshedding to improvements at Transnet, reopening Metro Rail lines, South African Airways returning to the skies, the South African Revenue Service’s remarkable turnaround, exiting grey listing, ratings upgrades, and even positive decreases in violent crimes; and that these must still see their full impact felt. 

Given the devastating war unleashed in the Persian Gulf, the source of 20% of the world’s oil supplies, it is critical that government put in place an economic and social relief package to help shield the working class and the economy from the steep hikes in the international oil and thus domestic fuel prices, inflation and the inevitable global economic slowdown.  It has taken South Africa three years to overcome the previous spillover from the war in Ukraine.  We cannot afford yet another period of economic stagnation.

Key elements to such an economic and social relief package need to include measures to reduce the price of fuel and electricity prices, our two main domestic inflationary sources as well as support for fragile economic sectors, including those at risk to global trade turmoil and high electricity tariffs, and fixing the long dysfunctional Unemployment Insurance Fund’s Temporary Employment Relief Scheme. 

Relief should also be put in place for social and SRD grant recipients as well as the unemployed, in particular massively expanding the Presidential Employment Programmes.  These should be accompanied by a stimulus package for SMMEs plus industrial and export sectors to help spur economic growth and job creation.

These bold interventions are essential if we are to break out of the tepid economic growth we have stumbled along for more than a decade and reach the 3% growth needed to tackle unemployment, poverty and inequality; and to give hope to an embattled working class and stressed society.

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za