Covid outbreak sees SA household debt rise faster

The International Monetary Fund (IMF) on Wednesday said household debt in South Africa expanded at a faster pace since the outbreak of Covid-19.

“Consumers in China and South Africa saw the largest increases in household debt ratios among the countries for which detailed data are available. But the experience of households in these two countries was very different: in China leverage increased the most among lower-income households whereas households with higher incomes accounted for most of the increase in South Africa.”

The IMF also said South Africa will perform only half as well as other emerging markets this year. The IMF predicts economic growth of 1.9% for 2022 and the forecast for 2023 drops to 1.4%.

The IMF also cut its global growth forecast to 3.6% from the previous 4.4%.