The Bureau of Market Research notes that the COVID-19-induced lockdowns, characterised by higher job losses, exacerbated income inequality in the country.
The agency’s latest market research into personal income revealed that 75% of the adult population in the country currently earns below R5 800 per month, while only 3.8% of the adult population earns more than R48 000 per month.
Research shows South African consumers’ debt situation is worsening:
The data shows that while cash flow income grew to reach R4.4 trillion in 2021, the distribution of income has been grossly unequal.
Head of Household Wealth Research Jacolize Meiring says economic and financial conditions are expected to continue to weigh heavy on the average consumer.
“We basically see that there’s various pressure on the consumer that’s outside of their control. The rising inflation originating from structural imbalances, originating from imported products, [and the] impact of local political pressures. The electricity supply constraints, poor service delivery, the recent flooding that we just had, all that adds pressure to consumers finances,” adds Meiring.
The video below is the full interview with Jacolize Meiring: