SA Economic Indicators: for the month of May 2013

SA Economic Indicators for the month of May 2013 © 2013 Trade Intelligence Updated Quarterly (Last Updated: April 2013) Boom period SA Economic Indicators Household Debt Source: South African Reserve Bank Effects of low interest rates South Africans are once again borrowing more and more

SA Economic Indicators for the month of May 2013 © 2013 Trade Intelligence SA Economic Indicators COMMENTARY The ratio of household debt to disposable income remains high, at 75.8% in the 4 th quarter of 2012, which means that for every R100 earned, South Africans have R75,80 debt The first rise in the measure since Q1/2009 was experienced in Q2/2012 Stanlib expects the ratio to rise over the coming quarters It does however expect it to remain manageable, considering the low interest rates According to FNB strategist John Loos, “Households are borrowing more on credit cards and store accounts” Personal loans account for 11% of total household debt Unsecured lending is a problem in South Africa. According to the regulator, in the year to September 2012 consumer loans not backed by assets increased 39% to R140bn and accounted for 10% of consumer credit. Household Debt

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