Economy to stay low, suggests BETI report
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.”