SA economy probably in recession, banking index indicates | Business

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South Africa’s economy probably entered a technical recession with a second straight quarterly contraction, according to an index that tracks interbank payments. | News24_Business

The BankservAfrica Economic Transactions Index, an early indicator of economic activity, dropped 1.7% in the first quarter compared with the prior three months. A median estimate in a Bloomberg survey of analysts is for a quarterly gross domestic product expansion of 0.2%.

The BETI is signaling the probability of a negative quarter-on-quarter number for the first three months,"which would mean that South Africa could dip into a technical recession", Kruger said in response to emailed questions. Gross domestic product contracted 1.3% in the final quarter of last year. Annual manufacturing production fell 5.2% in February, a fourth straight decline and the steepest since April last year. The purchasing managers’ index compiled by S&P Global, which measures the performance of the private sector, declined to 49.7 last month, signalling contraction.

 

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_Business Fixed the headline for you. 💁🏻‍♂️ South Africa’s economy probably entered a technical recession with a second straight quarterly contraction, proudly brought to you by the MYANC according to an index that tracks interbank payments.

_Business What a bad news for the country at this critical time

_Business Viva

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