South Africans are enduring one of the harshest economic periods in decades, but taking stock of their situation, many cut debt last year and are now in a stronger position to spend, promising a boost in economic growth in the months ahead. Even so, a record petrol price hike, a 2.2% contraction in GDP in the first quarter - the most since the 2009 recession - coupled with a rise in VAT and sharp increases in administered prices has sent some economists back to the drawing board to revise their growth forecasts. However, that may be premature. Although household consumption expenditure decelerated by 1.5% in the first quarter - in line with a slowdown in retail trade sales over the period after steady growth last year - there are signs that the economy could be poised to take off. Razia Khan, Standard Chartered chief economist for Africa and the Middle East, said this week during the Johannesburg leg of her South Africa roadshow: "Something fundamental shifted in the household secto...
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