Retail sales growth slowed to 0.5% in April, Statistics SA said on Wednesday.
This is down from 4.6% in March, the month before democratic South Africa’s first ever VAT hike.
The April figure was dramatically weaker than economists expected.
Consumer spending accounts for more than 60% of GDP.
Furniture stores thoroughly bucked the trend, growing sales by 11%.
Listen to the interview in the audio below (and/or scroll down for quotes from it).
It [VAT increase] doesn’t go away… the petrol price hike was significant… the trend is worsening…— Evan Walker, 36ONE Asset Management
This might stem a rate hike…— Evan Walker, 36ONE Asset Management
We’re not seeing any job creation in the next couple of months…— Evan Walker, 36ONE Asset Management
We’re not going to get close [to 2% economic growth]… I have a very negative outlook for retail sales… We haven’t got more money to spend.— Evan Walker, 36ONE Asset Management
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