PwC: South Africa Economic Outlook – Jobs, inflation and interest rate trends point to some positive news
PwC is pleased to presented its eighth South Africa Economic Outlook report for 2023 to the Africa Private Equity News community.
Currently, there are many factors causing negative consumer sentiment, including a decline in real household income and almost daily electricity load-shedding. However, there is also some good macroeconomic news.
In our latest report, we make reference to some positive factors related to the consumer outlook. For example, employment is growing at a faster rate than many have expected given the elevated levels of load-shedding. Furthermore, the recent increase and near-term planned investment in solar power is brightening the outlook for economic growth in 2024.
On the monetary front, interest rates have likely peaked, and it is anticipated that the next move from the central bank will be to lower lending rates during 2024. The decline in real (i.e. inflation-adjusted) salaries and wages is also slowing as consumer price inflation continues to trend lower.
Key content in this report includes:
– Employment creation: Jobs continue to rise as businesses show increasing resilience against electricity challenges.
– State of the South African consumer: Cloudy with a chance of interest rate cuts.
– Consumer sentiment: Shoppers respond favourably to special offers as their buying power continues to decline.
– Sustainability trends: Consumers are willing to pay more for goods that have a positive environmental impact.
– Technology focus: Shoppers demand a seamless phygital customer experience (CX).
– How PwC can help to improve customer service delivery, including CX, marketing diagnostics and building trust with consumers.
Download the latest South Africa Economic Outlook report here.
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