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BETI data suggest there was big economic bang in Q3

Screen Shot 2020-10-19 at 2.28.49 PM

Ed Stoddard, Business Maverick , 14 October 2020, photo credit:

The BankservAfrica Economic Transaction Index (BETI), a measurement of economic transactions between South Africa’s banks, improved for the fourth consecutive month in September., which calculates the index, says this is the latest indication that South Africa’s third-quarter GDP reading “will be the strongest on record” said the headline BETI in September was marginally higher for the first time in six months. 

“The unexpected improvement of 0.4% − the first since March 2020 and a significant shift from -4.3% in August 2020 − is welcome news,” it said. 

Of course, everything is relative. By the same measure, the economy contracted 51% in Q2, the period of course that coincided with the most stringent lockdown measures which smothered commercial activity. So while a 40% or 50% bounce-back is welcome, it hardly gets the economy back to its previous size. 

Think of it this way: if an economy or GDP is worth $100-billion and contracts 50%, it is worth $50-billion. If it then expands 50%, that only takes it back to $75-billion.
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