BankservAfrica reports a slump in S.African economic activity

South Africa's economic momentum faced a setback as the BankservAfrica Economic Transactions Index (BETI) dropped to its lowest level for the year in April. The disappointing numbers raised concerns about the health of the real economy amidst global headwinds and low confidence. Economist Elize Kruger shed light on the impact of the US Liberation Day announcements and the evolving trade war on economic activity in South Africa, which led to a significant shock in confidence levels. However, despite these challenges, Kruger highlighted structural tailwinds that could potentially support a second-half rebound. With recent trade deals showing signs of easing global volatility, there is hope for a recovery in local sentiments despite lingering uncertainty. While the April BETI number marked a dip, the year-on-year comparison remains positive, pointing towards underlying resilience factors like low inflation rates and real wage increases. Kruger emphasized the importance of these factors in driving growth in South Africa in the coming months. Amidst mixed signals from indicators like PMI and manufacturing data, Kruger noted the varied performance of different sectors, highlighting an economy that is navigating through both positive and negative trends. Looking ahead to the rest of 2025, Kruger expressed optimism for a moderate rebound in the second half, citing structural reforms and improving confidence levels as key factors. As the country continues to grapple with global trade uncertainties, the hope is for a more stable economic environment in the coming months.