According to the latest Altron FinTech household resilience index (AFHRI), South African households were less resilient in Q1 2023 than they were during the height of the Covid-19 pandemic.
- The index score came in at 108.1, down 2.6 points QoQ and 1.9 points YoY.
- The decline in household resilience is attributed to inflation, high interest rates, and load-shedding.
- The index measures the ability of South African households to withstand economic shocks such as those caused by Covid-19.
- The AFHRI also indicates that low-income households have been hit the hardest, with their index score dropping by 3.6 points QoQ.
- Overall, the index shows that households are struggling to cope with the current economic climate.
- The decline in household resilience could have negative implications for the South African economy as a whole.
- The government and policymakers may need to consider measures to support households and stimulate economic growth.
Visit the AFHRI page for more insights by clicking here.