BankservAfrica Economic Transactions Index rebounds, signalling hope for South Africa

AFTER months of stagnation and uncertainty, South Africa's economic landscape has witnessed a notable shift in the BankservAfrica Economic Transactions Index (BETI).

- SIPHELELE DLUDLA

The index, which measures the value of electronic transactions processed through BankservAfrica on a monthly basis at seasonally adjusted real prices, rebounded to an index level of 138.3 in May, a rise from 136.2 recorded in April.

This marked a welcome break from an eight-month trend of inactivity, sparking hope for sustained economic recovery. According to Shergeran Naidoo, BankservAfrica’s head of stakeholder engagements, this improvement could signify a turning point.

“The BETI improved to an index level of 138.3 in May, up from the 136.2 recorded in April, breaking an eight-month trend of sideways movement,” Naidoo said.

However, experts urged caution, emphasising that while this uptick was encouraging, it may be too premature to declare a definitive shift in the economic landscape.

“While encouraging, it is too early to call an imminent change in trend as the economic environment has notchanged materially in May and notable risks remain,” cautioned Elize Kruger, an independent economist.

“Furthermore,a part of May’s improvement stems from wiping out the weakness evident in the index in April.”