The Star Late Edition

SA ECONOMY IS ON THE REBOUND, SAYS BANKSERVAF­RICA

- Banele Ginindza

SOUTH African growth indicators for

April saw the highest and fastest growth on record, signalling a strong economic bounce back to pre-Covid levels, according to the BankservAf­rica Economic Transactio­ns Index (Beti) for April.

The Beti increased by 25.9 percent year-on-year in real terms, boosted by current higher commodity prices.

The headline Beti is a reflection of the economy’s recorded changes on an annual basis. However, with the lockdown impact from April 2020 distorting the number somewhat, the short-term variations were important to observe, BankservAf­rica cautioned. Economist Mike Schüssler and BankservAf­rica’s Head of Stakeholde­r Engagement­s Shergeran Naidoo said yesterday that while the index was encouragin­g, true growth still remained elusive. “On a monthly level, the Beti improved by 2.3 percent. This is the strongest since February 2021; the quarter-on-quarter change was

2.7 percent,” Naidoo said. The April Beti showed the economy was experienci­ng a massive economic bounce back that would remain for as long as low rates and government deficit spending keeps money flowing through the economy.

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