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The Citizen
6 days ago
- Lifestyle
- The Citizen
Spend like there's no tomorrow, né?
Economic stress hasn't stopped citizens from splurging on image and indulgence, often at the expense of essentials. When the going gets tough – and it's not exactly all sunshine and roses at the moment – then, as the Sandton cynics would say, 'doll, the tough go shopping'. Although most of the money we earn goes on housing and food, South Africans are experts at living for today and to hell with tomorrow. Many, as we report today, splurge on things that could easily be avoided. According to a 2023 study by the Bureau of Market Research, we spent R176.7 billion on entertainment and media in 2022, with projections this will hit R231.2 billion by 2027. 'Eat, drink and be merry for tomorrow we die' is the kind of fatalism which leads to alcoholism, gender-based violence and just plain bad citizenship. ALSO READ: Five money mistakes that seem smart, but could cost you a lot later But then, a worryingly high proportion of discretionary spending (cue laughter in the background from those who don't have any) is spent on image – flashy cars, flashy clothes and extravagant parties, often at the expense of basics like decent housing, education for the kids or, certainly, provision for retirement. At the extremes, some of the consumption by our rich elites is, for want of a better word, nauseating. You could always save – or give some to charity. No? We didn't think so.
The Citizen
6 days ago
- Business
- The Citizen
SA consumers prioritise lifestyle over essentials
Mzansi's spending habits reveal a nation hooked on status and convenience, even if it means financial strain and mounting debt. When South Africans go to therapy, it's retail. There seems to be no end to the lengths anyone will go to in order to wear the right brands, dine at the trendiest spots and keep up appearances, all while quietly cringing when the bills arrive. Research across several studies suggests that Mzansi has a serious appetite for instant gratification. We are spending big, often prioritising nice-to-haves over essentials. Household spending hits trillions In 2022 and 2023, South African households collectively spent a staggering R3 trillion, according to Statistics SA – an average of R143 691 per household. A significant portion of this, nearly 76%, went on housing, food, transport and insurance. But when it comes to non-essentials, many are splurging on things that could easily be avoided. Entertainment costs are soaring According to a 2023 study by the Bureau of Market Research, South Africans spent R176.7 billion on entertainment and media in 2022, with projections to hit R231.2 billion by 2027. Streaming services like Netflix, Showmax and Amazon Prime are now a staple in most homes, but they come at a steep price. High-income households, especially men over 40, are reportedly forking out over R1 000 a month for these services according to a Standard Bank published survey in 2023. Lower income households aren't immune to spending on showbiz either. Monthly costs on television average R336. ALSO READ: Lower wage workers being exploited as 43% of South Africans buy food on credit DStv, which has seen its premium package prices rise from R625 in 2013 to over R1 000 now, continues to have a tight grip on consumers. Despite financial strain, 66% of lower-income households kept their DStv subscriptions, often sacrificing essentials like food or domestic help just to avoid cancellation. Biltong and big weddings don't come cheap But what is a rugby game on an expensive subscription service without indulging in over-priced air dried meat. Biltong prices have surged, according to Reddit users and anecdotal evidence at store level. It shot up by almost 60% in the past eight years to almost R400/kg in some instances. Some Reddit users have called out biltong for being 'three times the price of meat'. Wedding season is coming up and here nobody spares expense when it comes to declarations of love. One Reddit user shared their wedding costs, estimating between R800 and R1 500 per head for a 120-person event, with venue costs alone ranging from R35 000 to R120 000. Add in food, which can cost R350 to R500 per person, décor and photography, and the total balloons into the price of a small apartment. Education expenses bite into budgets Thanks to failing state education, spending on learning has also rocketed. StatsSA noted that education only accounts for 2.45% of total household consumption. ALSO READ: Repo rate cut no help for consumers on brink of financial disaster Yet, in real life, many families are spending far more than this. One Reddit user said that their family spends R10 000 a month on education-related expenses per child, just for decent schools. South Africans are big on takeaways and restaurant meals. Stats SA's 2023 report shows that takeaway and restaurant meals account for 3.6% of household expenditure, a higher percentage than some families spend on education. The rise of food delivery services have fuelled this trend. This is despite the cost of restaurant delivered meals being charged at a premium. Food delivery, fashion, and debt trap South Africa's high data costs are infamous and Independent Communications Authority of South Africa research last year showed that households spend between R300 and R900 per month on mobile services. Fashion eats money, too. Younger people are spending a large chunk of their income, sometimes 12-15%, on clothing, often financed through store accounts or credit. The need to show off expensive name brands burn wallets. According to BankServAfrica's 2023 survey, car instalments are the second highest debts consumers incur after home loans. People are overspending because they believe they are buying status. Credit can sink anyone when mismanaged. According to TransUnion's 2024 Credit Insights report, 41% of active credit users are over-indebted. NOW READ: Gambling addiction referrals rise 40% as billions spent on betting advertising
The Citizen
11-08-2025
- Business
- The Citizen
Economists' economic growth outlook steady but remains subdued due to global risks
The forecast of the top 40 economists in the country is not very good, but then also not that bad either. The country's top 40 economists forecast that the economic growth outlook for the globe, as well as South Africa, is steady but remains subdued due to various domestic and global economic risks. These economists, who are finalists in the Economist of the Year Competition hosted by the Bureau of Market Research (BMR), South Africa's 2025 economic growth forecast remains at a modest 1.0%, unchanged from June due to global geopolitical uncertainty, local structural constraints and easing inflationary pressures. This is their July 2025 median consensus for some of South Africa's key economic indicators: Real GDP growth for 2025 According to the economists, there was a gradual decline in gross domestic product (GDP) from February to July, reflecting weaker domestic growth sentiment. Their average real annual GDP growth rate forecast stands at 1.0%, steady from June but notably down 0.5 percentage points from February's 1.5% forecast. This reflects a gradual decline in optimism about domestic growth prospects amid ongoing structural challenges. ALSO READ: Global economic growth surprisingly resilient but not many reasons to feel safe – Kganyago Consumer inflation Consumer inflation showed a persistent downward adjustment, moving well below the midpoint target of the South African Reserve Bank (Sarb).. The economists' average consumer inflation rate forecast has eased to 3.7%, down slightly from June's 3.8% and significantly lower than February's 4.1%. This sustained downward revision places inflation well below the midpoint of the Sarb's current inflation target range. Prime interest rate (Q4 2025) There was a slight drop in the prime interest rate, reflecting the economists' expectations for more aggressive interest rate cuts. The average prime interest rate the economists expect in the fourth quarter of 2025 remains at 10.5%, unchanged from June but slightly lower than February's 10.8%, indicating growing expectations during this period for some monetary easing. ALSO READ: Economic activity slowly improving although economic pressure persists Rand/dollar exchange rate (Q4 2025) The rand strengthened marginally, despite strengthening despite volatility in prior months. The economists forecast that the rand/dollar exchange rate forecast for the fourth quarter of 2025 is R17.87, reflecting a marginal rand strengthening compared to R18 for June and February, despite recent volatility. Brent crude oil price (Q4 2025) There was a significant downward shift in the oil price, easing imported inflation pressures. The economists' average Brent crude oil price prediction dropped to $68.00 per barrel, down from June's $68.50 and a substantial $6 decrease from February's $74.00 estimate, easing some imported inflation pressure. ALSO READ: IMF keeps SA growth forecast unchanged but increases global growth forecast Real household expenditure growth Real household expenditure was largely stable over the year at 1.7%, unchanged from June and only slightly down from February's 1.8%, indicating steady but modest consumer spending expectations. Global GDP growth The economists forecast continued weakening in global growth expectations, with the real annual global GDP growth rate forecast at 2.5%, steady with June but down 0.4 percentage points from February's 2.9%, signalling a persistent slowdown in global economic momentum. Employment growth (Q4 2025) The economists forecast that the employment growth outlook is softening. They forecast a year-on-year employment growth rate for the fourth quarter of 2025 at 0.9%, slightly down from June's 1.0% and February's 1.1%, pointing to softer expectations for labour market expansion. ALSO READ: Inflation increases in June as food prices increase to 15-month high Underlying issues holding back economic growth Professor Carel van Aardt, COO of the BMR, says the fact that GDP growth expectations remained anchored at a low 1.0% in recent months shows the resilience of pessimism in the market. 'The underlying issues, energy and infrastructure constraints, logistics bottlenecks, global volatility due to tariffs and geopolitical conflicts and policy uncertainty, are holding back confidence and investment, preventing the economy from gaining meaningful momentum.' Van Aardt points out these important changes in the economists' forecasts for economic growth over the year:
eNCA
06-08-2025
- Business
- eNCA
At least 50% of SMME's face closure within 12 months
JOHANNESBURG - Half of all small and medium-sized businesses are at risk of not surviving the next 12 months. That's according to the latest Small Business Growth Index. It's a new survey from Absa, SACCI and UNISA's Bureau of Market Research. According to UNISA's Bureau of Market Research's Professor Carl Van Aardt businesses reported to be in a vulnerable state due to the economic environment which is not conducive for them. He says businesses have to bare a lot of regulations, red tapes and issues with access to finance which add to their burden and ability to survive.
The Citizen
22-07-2025
- Business
- The Citizen
Economists lower GDP growth forecast due to global and domestic risks
Economists have revised their expectations for GDP growth down to 1.0% in June, down from 1.5% in February. South African economists taking part in the Economist of the Year competition have lowered their GDP growth forecasts as global and domestic risks, global policy uncertainty, structural imbalances, political volatility and geopolitical risks persist. The Economist of the Year competition is hosted by the Bureau of Market Research (BMR), based on predictions submitted by 40 of the country's top economists. Each month, participating economists provide predictions on eight key economic variables, with the June 2025 consensus reflecting the latest midpoint across all forecasts. Reflecting on the deteriorating outlook, Professor Carel van Aardt, COO of the BMR, says these forecasts confirm that the South African economy remains stuck in a low-growth trap, compounded by global volatility and domestic structural deficiencies. 'Without meaningful reform and certainty in policy direction, growth will remain constrained and unemployment stubbornly high.' ALSO READ: G20 finance officials say downside risks dominate global economic outlook – IMF Re-imposition of US tariffs contributed to economists lowering their GDP growth expectations Professor Deon Tustin, CEO of the BMR, says the competition serves as a vital barometer of informed sentiment in the economic community. 'This consensus not only guides business and policy decision-making but also fosters transparent debate on South Africa's economic prospects amid turbulent global conditions.' Professor Corne van Walbeek, director of the research unit on the economics of excisable products at the University of Cape Town and member of the competition's adjudication committee, says the outlook for the domestic as well as the global economies has worsened slightly since the start of the year. 'Predictions for both gross domestic product (GDP) indicators are down by about 0.5 percentage points since February. While it is difficult to attribute this to a single cause, the re-imposition of US tariffs and general uncertainty under the Trump administration are likely contributors. 'Interestingly, expectations for household expenditure growth remain largely unchanged, while inflation predictions have dropped. The current consensus inflation rate of 3.8% sits well below the midpoint of the inflation target band, which may explain why forecasters anticipate more aggressive interest rate cuts than they did earlier in the year.' This chart shows the consensus forecast of the 40 economists:
