Economy / General

Four in ten across 28 countries expect their disposable income to fall over the next year

Consumer finances crumble under the pressures of rising prices and interest rates

The state of consumer finances in South Africa deteriorated in the second quarter of 2022 (Q2 2022). This is according to the latest Momentum-Unisa Consumer Financial Vulnerability Index (CFVI), which indicated consumer finances have dipped back into a very exposed state.

Despite some headwinds, the positive agri export environment is likely to continue in 2022

While it’s not quite at the high level it was this time last year, the contribution of South Africa’s agri sector to the country’s GDP is currently still very positive.

A whopping 75-basis points rate hike ahead of the new summer crop season

A combination of runaway inflation, tightening policy cycle by major global central banks, and uncertainty over the Russia-Ukraine war with its ramifications for commodity prices and economic growth forced the SARB’s hand to hike rates. Effective from the 22nd of July, the repurchase rate increases by 75 basis points to 5.5% per year.