• IS provokes sea-change

    It has been a grave mistake to defy both Russia and France, says Leopold Scholtz.

  • Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

All data is delayed
See More

SA still lacklustre

May 14 2012 10:09
Mari Beukes, Sake24
Johannesburg – South Africa's economic growth is still too weak to make a real difference to enterprises and the situation of the jobless.

In March the Sake24 and BoE Private Clients South African Barometer was 3.8% up on the year before, but some provinces are still falling behind. The barometer is compiled from the provincial barometers, which reflect economic activity in the country's five biggest provinces in terms of their gross domestic product.

In March, the Gauteng barometer, which carries the most weight in the South African barometer, was 8.3% stronger than the year before. But the Eastern Cape barometer fell 3.9%, and that of the Free State lifted a mere 0.1%.

Mike Schüssler of Economists.co.za, who compiles the barometers, said South Africa's economic growth seems to have reached a plateau for now.

"The strongest growth in recent times was in the first and fourth quarters of last year and I don't think we'll do better than that this year."

Schüssler said Europe's economic problems and falling commodity prices in particular are hampering the country's growth. But, unlike Europe, South Africa will not have to struggle through a recession.

He said most sectors in the country are still showing positive growth, and agriculture is apparently starting to recover. But the mining sector's performance remains dismal.

"We're not in trouble; we just won't be able to work and produce income in the way we would wish. We are growing at about two-thirds the rate we could achieve."

Schüssler said consumer spending has been underpinning the country's economy for the past year-and-a-half.

"In most of the provinces consumers are spending less – other than in Gauteng, where spending is still ratcheting up." About 4.1 million of the country's 13 million workers earn their living in Gauteng.

In March Gauteng's trade index, which is compiled from retail, wholesale and petrol sales, was 9.6% better than three months previously.

During this period the KwaZulu-Natal trade index could add only 4.4% and that of the Western Cape only 5.5%. "Restaurants are still complaining that they are not busy enough, but supermarkets will still fare well," said Schüssler.

 - 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.



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote