Econ­omy to stay low, sug­gests BETI re­port

The Witness - - YOUR MONEY - — Fin24.

CUR­RENT eco­nomic ac­tiv­ity in South Africa is down on last year’s num­bers in real terms, ac­cord­ing to the lat­est Bankserv Africa Eco­nomic Trans­ac­tions In­dex (BETI) re­leased yes­ter­day.

Ac­cord­ing to the BETI re­port, just when eco­nomic ac­tiv­ity seems ready to pick up, short­term shocks project badly on ac­tual eco­nomic trans­ac­tions.

“The con­stant change in di­rec­tion of the BETI sug­gests the econ­omy will re­main low to flat in the im­me­di­ate fu­ ture. The only con­stant at present is the un­cer­tainty of both busi­ness and con­sumers. On a big­ger pic­ture level, the data is re­veal­ing that the econ­omy is chang­ing di­rec­tion so of­ten that it is ac­tu­ally just run­ning on the spot,” states the re­port.

The BETI re­port de­scribes cur­rent eco­nomic ac­tiv­ity in SA as “in­cred­i­bly volatile, with the topsy­turvy eco­nomic tra­jec­tion seem­ingly the trend”. This is as mea­sured by the through­put of trans­ac­tional data via Bankserv Africa’s South African pay­ment sys­tem.

The BETI data re­flects trans­ac­tional ac­tiv­ity from in­di­vid­u­als and firms mak­ing pay­ments for goods and ser­vices elec­tron­i­cally and via cheques.

The BETI for June showed eco­nomic ac­tiv­ity reg­is­tered a 0,4% month­on­month growth af­ter de­clin­ing by ­0,1% be­tween May and April.

On a year­on­year ba­sis, the BETI con­tin­ued to de­cline com­pared to a year ago, as well as for the last nine months.

How­ever, the June year­on­year de­cline of 0,4% is the low­est in this pe­riod. For the sec­ond con­sec­u­tive month, there was no change in the quar­terly data.

“Eco­nomic trans­ac­tion num­bers have re­duced even as in­fla­tion re­mains over five per­cent. This could be partly due to the shift in the types of goods that are mov­ing though the econ­omy at present.”

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