JOHANNESBURG (Reuters) – Foreign direct investment (FDI) inflows to South Africa fell in the second quarter 2022, while household debt levels rose and consumer spending slowed, central bank data showed. Tuesday.
Household debt as a percentage of nominal disposable income edged up to 64, the South African Reserve Bank (SARB) said in its quarterly bulletin. 6% from the first quarter 39.3%.
South African consumers came under pressure in the April-June period, with inflation rising as higher food and fuel costs and rising interest rates hurt disposable incomes. Gross domestic product contracted by 0.7% in the second three months of the year.
Real consumer spending growth slowed to 0.6% in the second quarter from 1.2% in the first quarter, with spending falling on durable and essential goods despite higher spending on services.
FDI inflows fell to 39 200 million rand ($1. 46 billion rand, down from 39 900 million rand in the first quarter, reflecting foreign companies lending it and increasing stakes in domestic subsidiaries, the SARB said Investments.
Following60 7 billion rand in the previous quarter. The central bank said the inflows were due to overseas investors buying more debt securities than selling of domestic stocks.