According to independent economist Elize Kruger, South Africa’s (SA) latest economic data signals a turning point, with the current environment described as “the calm before the storm” amid growing global pressure from the Middle East conflict.
The PayInc Economic Index, which tracks the value of electronic transactions in SA, increased by 0.9% in March, lifting the index to 104.7 points. This reflects a 4.6% rise compared with the same period last year.
Kruger says the first quarter’s performance was supported by easing inflation, real wage growth, interest rate cuts and improved consumer confidence, all of which helped strengthen spending activity.
However, she warns that these gains may be under threat as external risks intensify.
Kruger described the current moment as “the calm before the storm”, pointing to the impact that escalating geopolitical tensions could have on SA’s economic outlook in the months ahead.
–ChannelAfrica–
