{"id":724374,"date":"2023-10-11T15:02:52","date_gmt":"2023-10-11T13:02:52","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=724374"},"modified":"2023-10-11T15:02:52","modified_gmt":"2023-10-11T13:02:52","slug":"red-flags-for-south-africas-gdp","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/724374\/red-flags-for-south-africas-gdp\/","title":{"rendered":"Red flags for South Africa’s GDP"},"content":{"rendered":"\n

South Africa is facing major headwinds, with data on the economy’s performance in Q3 2023 reflecting this. <\/p>\n\n\n\n

BankservAfrica Economic Transactions Index (BETI) highlighted another month of weaker economic activity, worsening fears over the country’s economic growth in the quarter. <\/p>\n\n\n\n

\u201cThe BETI slipped marginally to an index level of 133.6 in September compared to the revised 133.9 in August,\u201d said Shergeran Naidoo, BankservAfrica\u2019s Head of Stakeholder Engagements. <\/p>\n\n\n\n

\u201cOn an annual basis, the BETI increased by 2%.\u201d<\/p>\n\n\n\n

However, on a quarterly basis, the BETI is 2% lower, reflecting the economy’s lost momentum in Q3 following a 0.6% increase in GDP in Q2. <\/p>\n\n\n\n

This is corroborated by the BETI declining for the past three consecutive months.<\/p>\n\n\n

\n
\"\"<\/a><\/figure><\/div>\n\n\n

\u201cAs a valuable early indicator of economic activity, the BETI data reflects the ongoing \u2018muddle-along\u2019 narrative playing out in the South African economy,\u201d said Independent Economist Elize Kruger. <\/p>\n\n\n\n

Load shedding, water supply constraints and a logistics sector that is struggling following a significant decline in rail services and slow ports are some of the issues facing the country. <\/p>\n\n\n\n

The rand exchange rate is also against the wall, affecting import prices, whilst fuel price hikes in the last three months could further strain consumer inflation in the near term. <\/p>\n\n\n\n

\u201cAs a consequence, interest rates are forecast to remain at current elevated levels for some months to come, with no near-term reprieve expected,\u201d said Kruger.<\/p>\n\n\n\n

Overall, the BETI signals muted economic growth performance in Q3, which will be weaker than Q2 with a likelihood of negative quarterly growth.<\/strong> <\/p>\n\n\n\n

\n
South Africa can expect another interest rate hike in 2023, say economists<\/a><\/blockquote>