A large bank has produced figures suggesting that SA is in better shape than we think. Dr Christoph Nieuwoudt, FNB executive responsible for data analytics, has shared analysis of income flowing in and out of consumer bank accounts. He shows that the economic contraction was ‘massive’ but the country is recovering.
Dr Nieuwoudt’s graphs serve as a reminder that the strict Covid-19 lockdown, not the spread of the virus, caused deep financial pain. Hardest hit were lowest income earners, as you might expect, though wealthier individuals have not seen a return to pre-Covid cashflow – because many are employers. What has helped grow consumer spending is that SA has a large army of well-paid public servants.
Also interesting is that, as is the case in Europe, South Africans have been saving hard this year, with the uncertainty of the government response to the pandemic making them fearful about the future. And, many are taking advantage of very low interest rates to get into the property market – with, says a leading estate agency group, first-time buyers fuelling the busiest October for sales in six years. More on those stories, on BizNews Radio and BizNews.com
PS: Another excellent Inside Investing podcast for individuals looking for insights to guide portfolio decisions. This episode, with BizNews founder Alec Hogg, includes in-depth discussions on Apple, Amazon, Naspers, OrbVest, Richemont.
Webinar alert: Today’s Noon Webinar with broadcaster Tim Modise focuses on help for businesses in distress. Free, but you must register: https://attendee.gotowebinar.com/register/1324111475714234383
BizNews Finance Friday. Taking a close look at SA investment opportunities, risks and challenges with you at noon are: entrepreneur and property investment specialist Michelle Dickens, managing director and co-founder of TPN Credit Bureau; and financial advisor Lourens Reichert of Holborn Africa. Free. Register here: https://attendee.gotowebinar.com/register/6646694434270030861
