CAPE TOWN – South Africa can expect a much softer growth figure in the third quarter of 2019, according to the latest data from the BankservAfrica Economic Transaction Index (BETI).
This after South Africa’s gross domestic product (GDP) figures for the second quarter of 2019 turned positive, as BETI predicted it would. This is despite July’s figures being revised slightly higher due to the lower than expected inflation and producer prices.
BankservAfrica said in its report on Wednesday that declining economic transactions in August offered little hope of a 3 percent GDP growth recurring in the third quarter.
Shergeran Naidoo, head of stakeholder engagements at BankservAfrica said the quarterly and monthly BETI numbers both declined by 0.9 percent in August, however, August’s lower figures were most evident in the 0.7 percent annual rate of change – a major difference from the 2.7 percent increase in July.
“Although this is also due to a very strong August 2018, which created a slight base effect impact, the change is still substantial,” said Naidoo.