South AfricaFNB Senior Economist Highlights Decline in South African Shopping Activity Amidst Challenging Economic Climate

Senior economist at FNB South Africa, Siphamandla Mkhwanazi, notes a one-percent decline in shopping activity last year compared to 2022, indicating a subdued consumer demand environment. This trend is anticipated to persist in the near term, driven by factors such as persistent inflation, elevated interest rates, and dwindling consumer confidence. Mkhwanazi emphasizes that tight lending standards and high debt service costs are likely to keep credit growth contained, both in banking and non-banking sectors, thereby offering limited support to consumption.