SA economy on course for 'swoosh' recovery
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JOHANNESBURG - BankservAfrica said yesterday the economy was on course for a “swoosh-shaped” recovery after the highest value of transactions was recorded so far this year in September.
The BankservAfrica Economic Transactions Index (Beti), which was released yesterday, showed that the nominal standardised transaction value was R930.6 billion last month.
This was the highest value this year, but was below the values in November and December last year. The Beti also indicated stronger growth for South Africa’s upcoming third-quarter gross domestic product (GDP) figures following an unprecedented plunge in the second quarter.
The index provides a quick indication of underlying trends across the economy and is generally in sync with the broader GDP changes.
The Beti improved for the fourth consecutive month in September, showing a monthly change of 2.7percent to 120.2 points from 117 points in August.
The headline Beti, which tracks economic transactions on an annualised basis, was marginally higher for the first time in six months, with an improvement of 0.4percent.
BankservAfrica’s head of stakeholder engagement, Shergeran Naidoo, said the economy had had a bounce that could be due to the move to lockdown level 1 last month, which brought some relief to businesses and consumers.
Economists.co.za chief economist Mike Schüssler said the monthly data changes might be a better reflection of the state of the economy at present.
The government is expected to unveil an economic plan that will reignite growth in the country, which President Cyril Ramaphosa is to table in Parliament on Thursday.
But opposition parties say it may have come too late as the economy was already buckling under pressure with the increase in the number of unemployed people.
Employment and Labour Minister Thulas Nxesi told Parliament this week that part of the plan will deal with the increase in unemployment after 2.2million people lost their jobs in the second quarter.