How SA is surviving inflation: less holidays, buying second-hand, losing luxuries

With a decline in economic growth, and rising inflation, consumers are spending their money more consciously and cutting luxuries out.

Presidency ‘concerned’ with new GDP figures

Minister in the Presidency Mondli Gungubele said the government had noted the gross domestic product (GDP) result for quarter two released by the statistician-general that indicated GDP decreased by 0.7% after two consecutive quarters of positive growth.

“We are concerned about the figures released. As a country, we have experienced slow growth and rising unemployment. During these difficulties, our general public and economy have shown to be strong.

“There are signs that the economy is on the road to recuperation. The latest employment figures, specifically, bore testament that our plans are beginning to bear fruit,” he said.

KZN floods and load shedding

Statistics SA recently indicated the damage caused to KwaZulu-Natal factories and the disruption to logistics and supply chains during the unrest in July last year decreased national manufacturing output by 5.9%.

“It is important to put the conditions of the second quarter into perspective, in that it was a period impacted by several factors that contributed to the contraction of GDP.

‘The second quarter was affected by load shedding, the ravaging floods in KwaZulu-Natal and Eastern Cape, higher cost of living and inflation,”

Gungubele added. He said it was a period in which the world experienced slow economic growth.

What South African’s have to say

Tehillah Newel recently joined the workforce and said she was lucky to be able to maintain her living expenses despite inflation. Newel said she had adjusted her budget and was more careful about spending. ‘I’m very conscious about the money that comes in and goes out. I am building my credit,’ she said. Newel said she also sold artwork.

Patience Mtungwa said she didn’t feel the effect of inflation because she didn’t have children. ‘We don’t travel as much as we did in the past. We still travel but stopped travel-ling abroad because it was expensive,’ she said. Mtungwa said she had noticed her groceries were costing more than before. ‘Especially cheese. I love cheese, so I’ve noticed.’

Nadia Alink said it has been difficult adjusting their budget to keep up with inflation with a baby. ‘Now you have to weigh up what you want versus what you need,’ she said. Alink said she has cut down on travelling and that she shopped online and bought second-hand items on Facebook. ‘Spending is not unconscious anymore,’ she said.

Hennis Beukes said he had to cut down on everything to adapt to inflation. ‘Groceries have gone up the most. Mine has doubled. The same two bags now cost me more. ‘Petrol also affected me, I was spending R600 to fill up, and now it’s almost R1 200 for a full tank. ‘Even if the price decreases, the other price adjustments won’t drop again.’

Rele Nshela said she was fortunate because she had more than one income. Nshela said she was picky when shopping for groceries and tended to focus on cheap-er foods as long as they were healthy. ‘The toiletries went up and the toilet paper. ‘You cannot even afford Baby Soft anymore,’ she said.

‘There is light at the end of the tunnel’

But economist Dawie Roodt said there was light at the end of the tunnel.

“The only advice is, just hang on a little longer and work on your budget,” he said.

Roodt said not everyone was struggling to make ends meet.

“Many people were doing quite well while the poor and the unemployed are struggling the most,” he said.

Roodt said with the elections on the way, South Africans must remember the mess was due to a destructive ANC government.

“Make sure you vote better next time. There is no ointment to put on the current situation in the country because nothing will improve now. Just hang on,” he said.

Roodt said the economy could recover if the ANC was removed from power.

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