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Bloemfontein - In May the Free State economy continued its good performance of recent months.
Its 12.9% overall index rise to 121.6 points year-on-year (y/y) was the biggest of all five provinces surveyed in the Sake24 and BoE Private Clients provincial barometers.
The Free State economy was noticeably lagging the trend in other provinces. Whereas a province like the Eastern Cape is currently experiencing a slowdown, the Free State economy is only now accelerating, said Mike Schüssler, the compiler of the barometers.
The Free State government index (19.4% up) was the province’s star for May. Government expenditure still plays a huge role in the Free State economy and Schüssler said it is somewhat concerning that much of government expenditure in the province goes towards wages or social services and not to fixed infrastructure, which would contribute to economic growth.
The transport index is 16.3% up on a year ago, now at 191.4 index points. This is the highest of all five provincial transport indices and an indication of the tremendous amount of through-traffic carried by the province’s main routes. Petrol sales rose 6.2% y/y in May and the number of passengers passing through Bloemfontein airport was 6% up on a year ago.
Unlike the case in the other provinces, the Free State index for property, financial and business services (11.7% up) looks much better than it did a year ago. The number of new home loans granted rose 15.4%, while property transfers went up 5.1%.
It is clear from the available data that there were more transfers and new bond registrations in the first quarter of this year than in the corresponding period last year, said Libo van Aswegen, an attorney at Free State firm Naudes.
Many firms of attorneys and property agents in Bloemfontein suffered losses in the first quarter of this year because the Mangaung municipality dragged its feet for months with the issuing of clearance certificates, without which properties cannot be transferred to new owners.
The service delivery levels of the new Mangaung Metro administration will only become apparent after July 1, said Van Aswegen.
- Sake24
For business news in Afrikaans, go to Sake24.com.
For more news on the Sake24/BoE Private Clients barometers, go to www.fin24.com/barometer.
Its 12.9% overall index rise to 121.6 points year-on-year (y/y) was the biggest of all five provinces surveyed in the Sake24 and BoE Private Clients provincial barometers.
The Free State economy was noticeably lagging the trend in other provinces. Whereas a province like the Eastern Cape is currently experiencing a slowdown, the Free State economy is only now accelerating, said Mike Schüssler, the compiler of the barometers.
The Free State government index (19.4% up) was the province’s star for May. Government expenditure still plays a huge role in the Free State economy and Schüssler said it is somewhat concerning that much of government expenditure in the province goes towards wages or social services and not to fixed infrastructure, which would contribute to economic growth.
The transport index is 16.3% up on a year ago, now at 191.4 index points. This is the highest of all five provincial transport indices and an indication of the tremendous amount of through-traffic carried by the province’s main routes. Petrol sales rose 6.2% y/y in May and the number of passengers passing through Bloemfontein airport was 6% up on a year ago.
Unlike the case in the other provinces, the Free State index for property, financial and business services (11.7% up) looks much better than it did a year ago. The number of new home loans granted rose 15.4%, while property transfers went up 5.1%.
It is clear from the available data that there were more transfers and new bond registrations in the first quarter of this year than in the corresponding period last year, said Libo van Aswegen, an attorney at Free State firm Naudes.
Many firms of attorneys and property agents in Bloemfontein suffered losses in the first quarter of this year because the Mangaung municipality dragged its feet for months with the issuing of clearance certificates, without which properties cannot be transferred to new owners.
The service delivery levels of the new Mangaung Metro administration will only become apparent after July 1, said Van Aswegen.
- Sake24
For business news in Afrikaans, go to Sake24.com.
For more news on the Sake24/BoE Private Clients barometers, go to www.fin24.com/barometer.
