New data from Statistics South Africa for July 2023 confirms the encouraging trend we have seen in business liquidations, which have fallen compared to last year. This prompts us to revisit our prior question: Does this decline signal a more robust economic landscape, or should we interpret it with caution? ADVERTISEMENT CONTINUE READING BELOW Progressing from Previous Trends
In a previous article, we discussed Stats SA data up to May 2023, which showed a notable decrease in business liquidations in sectors such as “Financing, insurance, real estate, business services,” and “Trade, catering and accommodation.” Seasonally adjusted via the X-12-ARIMA method, this information offered a more transparent snapshot. The latest data, covering up to July 2023, strengthens this narrative, indicating a 15.2% fall in liquidations compared to the same month in 2022 and a 14.
Analysing the decline: A double-edged sword? ADVERTISEMENT CONTINUE READING BELOW A reduction in liquidations might not be an unequivocal positive. As noted in our previous article, a declining rate could either indicate an improving business climate or a stagnant “zombie” economy where businesses merely survive. This concern remains relevant despite the encouraging new figures.