Reflecting on the past year to prepare for a financially fit 2025

As any adventurer will tell you, in order to plot a path forward, it’s vital to know where you’ve come from.

Personal finance is no different. Before you can start planning what you want to do with your money in 2025, you need to reflect on the past 12 months.

Last year was an eventful year for the South African economy. Let’s look at five themes that have affected our finances in 2024.

1. The government of national unity (GNU)

The formation of the GNU stimulated investor confidence in anticipation of market-friendly policy reforms. The International Monetary Fund and World Bank expect real GDP growth to accelerate over the next two years.

2.Inflation at a four-year low

Inflation dropped to a four-year low of 2.8% in October, the lowest reading since June 2020. This was due to a moderation in food and oil prices, and a stronger currency. However, inflation is expected to turn in the coming months. Fuel prices have started to inch up in the last two months of the year due to a rise in global oil prices. The rand has also weakened slightly against the dollar after the US elections

3. Interest rates lower by 50 basis points

Interest rates declined by a cumulative 50 basis points in the second half of the year, providing some relief to consumers.

4. More than 250 days without load-shedding

SA has experienced more than 250 days without load-shedding as more capacity comes online and management of existing capacity improves. Households, businesses and independent power producers have ramped up rooftop solar installations with total capacity exceeding 5,400 megawatts. Improved electricity provision is expected to support economic growth.