Delving into the heart of South Africa’s economy, the author examines fresh data from Statistics South Africa on the dark world of business liquidations. Collated from the Companies and Intellectual Property Commission and the Department of Trade, Industry, and Competition, the data paints a comprehensive picture of both voluntary and compulsory liquidations across the nation as at the end of May 2023.
According to Stats SA, to provide a clear lens on the situation, the data has been seasonally adjusted with the X-12-ARIMA Seasonal Adjustment Program, an algorithm developed by the US Census Bureau. [This process strips away the annual seasonal influences, leaving behind a clearer picture of the underlying trends].
In this exploration, we aim to unwrap the meaning of this data, a vital sign of the nation’s economic health and business climate. For those eager to dive deeper into the methodology and seasonal adjustment process, the Stats SA website serves as a gateway to more detailed information by following the link at the end of the article.