Breaking down the numbers <\/strong><\/h2>\n\n\n\nIn addition to official statistics, other figures can help in understanding the current mood in South Africa, such as the GDP and the Business Confidence Index.<\/p>\n\n\n\n
South Africa’s GDP has seen minimal growth in 2024, with the country recording measly increases of 0.7% in 2023 and 2024.<\/p>\n\n\n\n
When considering South Africa’s population growth of roughly 1.5%, the country’s population is becoming poorer on average. <\/p>\n\n\n\n
The outlook for 2025 has also deteriorated progressively, with the IMF recently reducing its forecast for South African GDP growth from 1.5% to 1.0%.<\/p>\n\n\n\n
The IMF noted that US President Donald Trump’s tariffs will likely affect South Africa and every other country in the world.<\/p>\n\n\n\n
Although South Africa’s 30% tariff was suspended for 90 days, South Africans still face the growing risks of a trade war between China and the USA.<\/p>\n\n\n\n
Looking domestically, despite the ANC and DA seemingly overcoming their differences, the country remains unattractive for business expansion due to a constrained power grid and ineffective economic policies.<\/p>\n\n\n\n
The MB\/BER Business Confidence Index (BCI) was 45% in Q1 2025, below the neutral mark of 50.<\/p>\n\n\n\n
Therefore, most businesses in South Africa are still generally pessimistic about operating conditions.<\/p>\n\n\n\n
Although the figure is higher than a year ago and just above the long-term trend for South Africa, the BER said this is a worrying sign.<\/p>\n\n\n\n
Four of the five sectors tracking confidence dropped relative to Q4 2024, and most respondents across sectors remain pessimistic over the current business conditions in South Africa.<\/p>\n\n\n\n
Thus, although the overall liquidations may be lower compared to 2024, there may be fewer businesses in operation that can be shut down.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
The latest liquidation data points to a worrying trend among businesses in South Africa. <\/p>\n","protected":false},"author":95,"featured_media":822798,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[22432,22135,1809],"class_list":["post-822777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-fluxmanss-attorneys","tag-liquidations","tag-stats-sa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/822777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=822777"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/822777\/revisions"}],"predecessor-version":[{"id":824232,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/822777\/revisions\/824232"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/822798"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=822777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=822777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=822777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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