Why preparing for a recession can be good for your finances
When it was announced that economic growth contracted by 0.6% in the first quarter of 2014, the dreaded ‘R’ word became a topic of conversation. The possibility of a recession strikes fear in the heart of individuals and the industry alike. The signs are there, however, they are more like post-it-notes than billboards. The main driver of the negative growth in South Africa is largely due to the strikes we have seen in the mining sector. While a second quarter retraction would signal a technical recession, economists and the South African Reserve Bank are optimistic that this is not going to happen.