SA on the verge of a full-blown recession: We all need to tighten our belts

Living in South Africa today is like floundering in a stormy sea: Just as you bob to the surface and try to catch your breath, another brutal wave pushes you under again.

The battering of Covid was just, seemingly, becoming a thing of the past when the Russian invasion of Ukraine turned the world upside down.

Fuel prices have rocketed into the stratosphere and all other prices have followed suit.

But then there is the real probability that the cost of living will be tossed even higher, as shortages of food caused by the Ukraine conflict impact on the price of basics.

Even the medicine to help treat inflation, which is threatening to get out of control, is harsh.

The increase in the lending rates announced recently by the Reserve Bank will make it even more difficult for those with debt to make it to the end of every month.

But, even having debt could be considered a privilege by the unemployed, who face a hand-to-mouth existence.

Now, according to the experts, we could be on the verge of a full-blown recession – the chances of that happening have doubled since January.

This is occurring at a time when we needed a little breathing space for the Covid-battered economy to continue its recovery.

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That recovery included significant improvements in both the agricultural and mining sectors in 2021.

There are some indications that there is increased demand for our exports, which should be good news, but it is balanced by the fact that our inefficient transport and ports system is proving to be a bottleneck.

The reality is that all of us are going to have to tighten our belts.

That is why it is more important than ever that we remember those who are worse off then we are and that we try to help where we can.