Very interesting read: (Paul)
Two years into the Covid-19 pandemic South African consumers are still facing economic challenges, with finances becoming increasingly stretched as people struggle to make it until the end of the month.
A new report by management consulting firm McKinsey & Company shows South Africans are not only concerned about the economic future of their country, they also worry about their current personal economic situation.
87% of consumers describe it as ‘stretched’, and of these:
- 13% say they are in crisis;
- 32% say they find it hard to make ends meet;
- 42% say they have to make adjustments.
“By and large, this perception cuts across all income levels. Even among the most affluent respondents with a household income above R500,000 per annum, only 28% say they are doing ‘fine’ or ‘very well’,” McKinsey said.
“While only a minority 35% believes that their situation will further deteriorate in 2022, 71% of consumers report that their ability to make ends meet has declined over the last 12 months.”