ECONOMY IN DISTRESS: BankservAfrica Economic Transactions Index registers fifth consecutive monthly decline in October

The BankservAfrica Economic Transactions Index in October had a modest year-on-year increase of 1%, BankservAfrica said on Thursday. But the devil is in the monthly detail – and it points to an economy in distress.

“While the BETI already signalled the probability of an economic contraction in Q3, the first indications for Q4 do not look encouraging either,” BankservAfrica said in a statement. The bottom line is that the BETI’s performance over the past few months is among a plethora of indicators suggesting that the economy may – and the jury remains out on this one, it must be said – have contracted in Q3 after shrinking 0.7% in Q2.That would equal a recession and mean current economic growth forecasts for the full year, such as Treasury’s of 1.9%, would need to be whittled down.

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