The statistics show that Africa's second largest economy contracted by 0.7 percent in the second quarter, led by declines in the agricultural, transport and retail sectors.
The interventions include creating tax credits for companies which invest in sustainable job creation‚ reducing regulatory red tape and government up-scaling investment in economic and social infrastructure.
Gross domestic product fell 0.7% in the second quarter, dragged down by weak performance in the agricultural sector.
The reported data indicate a decline of 0.7 percent in the second quarter of the year, following a first-quarter decline of 2.2 percent. "The decrease was mainly because of a drop in the production of field crops and horticultural products", the statement read.
As we have said this is a technical recession which is over two consecutive quarters.
Godongwana says South African shouldn't panic, as the party doesn't believe the recession will flow into the third quarter.
Industrials lost 1.76 percent, banks 4.17 percent, general retailers 4.27 percent, and food and drug retailers 2.25 percent, but the gold index added 0.62 percent.
And Arthur Kamp, economist at Sanlam Investments, has warned that low growth lies ahead, with future growth expectations now likely to be revised down.
Stats SA said the 0.7% downturn in the second quarter of 2018 was a result of a fall-off in activity in the agriculture, transport, trade, government and manufacturing industries. Exports of goods and services were up 13.7%, largely influenced by increased trade in precious metals, mineral products and vegetable products.
The South African rand fell by more than 2 per cent against the U.S. dollar after the announcement.
The unexpected GDP weakness in the latest quarter came as a blow to President Cyril Ramaphosa, who is trying to revive the economy and woo foreign investors. Following the release of disappointing first quarter GDP data in early June, the central bank reduced its forecast for this year to just 1,2%.
"Given our fiscal deficit and the need to close it, it is nearly certain that taxes will have to be increased at next year's budget review, which again eats into disposable income", says Muscat.