South African GDP – consumers in for further relief but be warned

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The encouraging GDP figure for the second quarter of 2017 which came in at 2.5% will surely help to bolster consumer confidence in South Africa, particularly after a challenging first half of the year marred by credit rating downgrades, a cabinet reshuffle and a technical recession.

With market expectations that the South African Reserve Bank (SARB) will make further interest rate cuts this year and coupled with the continuing downward trend in inflation, consumers may enjoy a welcomed relief, especially ahead of the festive season.

However, an important point for consumers to consider is that a low interest rate environment coupled with favourable inflation levels should not be taken as an opportunity to embark on spending sprees and accumulate unnecessary short-term debt. Consumers must remain cognisant of the fact that markets are cyclic and chances are that the cycle will turn at some point.

Instead, this presents an opportunity for consumers to take advantage of current market conditions by reducing short-term debt and investing any excess disposable income to build towards a stronger future financial position.”

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About Author

Thabo Mphahlele is the BizNis Africa Head of Sales and Marketing. Mphahlele was previously MultiChoice Production Support Analyst responsible for developing and monitoring applications. In addition, Mphahlele develops and automates batch scripts and is responsible for the daily infrastructure maintenance at MultiChoice. As a Production Support Analyst, he is responsible for incident analysis solving , developing and constructing business reports for SQL and Oracle and implement change controls for the business. Additional responsibility includes monitoring system performance via SOA, Kibaba (Elasticsearch), H.P BSM, HP Sitescope. Mphahlele is responsible for creating infrastructure performance reports through HP Ops Analytics, monitoring payments via Splunk and in-house built-in tool and disaster recovery simulation and testing. At Nashua Mobile, he was responsible for application development and enhancing the web sites At South West Gauteng College, he was the IT Technician and Network Administrator. During his tenure at Double Digit Media, he was he focused on application and web site development for new and existing clients Mphahlele contributes as a Content Manager for BizNis Africa.

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