Cape Town - Recent developments in South Africa concerning the change in minister of finance and the subsequent downgrade of South Africa’s foreign and local currency ratings may have contributed to the growth rate of the BankservAfrica Economic Transaction Index (Beti) slowing down again in April.
The Beti deteriorated on a monthly and annual basis with only the quarter-on-quarter comparison remaining the same.
The real change in processed economic transactions by BankservAfrica on a year-on-year basis remained negative in April, declining by 1.8% from March, according to the Beti report.
This indicates that the economy remains under stress. The decline is at the same level as December 2016 and worse than the decline of -1.3% in March.
The monthly change was still positive as the Beti increased by 0.2% between April and March. However, this is weaker than March and February where a 0.5% growth was reflected between the two months.
"While these changes do not necessarily confirm a trend, the fact that the Beti has slowed indicates that some economic activity retreated in April and the downgrades of the South African economy probably played a role," according to the report.