South Africa’s economic environment remains challenging as the cost of living stays high and the global economy continues to slow.
That emerged from the BankservAfrica Economic Transactions Index (BETI) which measures economic transactions between the country’s banks.
It fell for the third consecutive month to 132. 3. The record low in the rand, high interest rates and electricity shortages remain major stumbling blocks for business and consumer confidence.
“The economic environment remained fairly grim during May. Not only ongoing load shedding but also the increase in the interest rate, exchange rates reaching all time low amidst policy and political uncertainties, high cost of living, lots of challenges for the economy. As this number is for May this is suggesting that the very subdued economic growth environment in quarter one has most likely also flowed in quarter two and thus, we are expecting more of the same in terms of this … economy that we are experiencing,” Elize Kruger, an independent economist explains.
