Two pots are better than one
The economy should gain from imminent retirement reforms as consumers will suddenly have access to as much as R100bn in savings. But will they splurge, or pay off debt?
22 August 2024 - 05:01
Economists are upgrading their growth forecasts slightly for this year and the next in anticipation that the two-pot retirement reforms will deliver an initial consumer windfall of between R20bn and R100bn.
This, together with lower inflation — it is expected to fall rapidly to 4.5% or less in the fourth quarter, paving the way for up to 75 basis points (bp) in rate cuts between September and January — will boost household consumption and retail stocks...
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