afrol News, 3 June - The economic crisis is to affect the pace at which South Africa is able to address its social and economic challenges, President Jacob Zuma said today in his first State of the Nation Address. South Africans were given a more sober outlook than in the election campaign.

Mr Zuma however told parliament the economic downturn would not alter the direction of the country's development. "The policy priorities that we have identified, and the plans that we placed before the electorate, remain at the core of the programme of this government," he said.

Referring back to the popular statement that he made during his inauguration as President of South Africa, Mr Zuma reiterated again today: "As long as there are South Africans who die from preventable disease; as long as there are workers who struggle to feed their families; as long as there are children who do not receive a decent education; as long as there are people who are unable to find work, government will not rest."

But President Zuma said that the development goals outlined by government would be introduced under difficult economic conditions. "The past year has seen the global economy enter a period of crisis unprecedented in recent decades. While South Africa has not been affected to the extent that a number of other countries have, its effects are now being clearly seen in our economy. We have entered a recession," he told MPs.

The president's speech comes a week after South Africa officially entered its first recession in 17 years as the economy contracted 6.4 percent in the first quarter, a figure which shocked economists.

The announcement brought with it further fears of job cuts, and interest rates were slashed another full point to 7.5 percent, although unions demanded they be cut even further to stimulate the economy. Earlier this year, economists predicted that up to 250,000 jobs would be lost as the mining and automotive industries suffer.

President Zuma called on civil society, government and businesses to unite against this crisis. "It is more important now than ever that we work in partnership on a common programme to respond to this crisis."

The State of the Nation Address has received mixed reaction from political party leaders and organisations. However, most South African observers agreed that the President had delivered a balanced and uplifting address considering a grey economic climate.

Helen Zille, Premier of the Western Cape and leader of the Democratic Alliance (DA), said that the President has pressed a lot of right buttons with regard to accountability, education and the independence of the judiciary. "However, now we must see if action follows the words. We will hold the President accountable," she said.

Congress of the People's Mbhazima Shilowa however said he felt that the address was "more like a wish list". The party added it was missing "fresh ideas" on how to address the grave recession.

By staff writer

© afrol News

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