In December 2023, 137 businesses closed down – 135 voluntarily so and five on compulsory basis.

Although the number of liquidations went as high as 1 657, this showed a decrease of 13.1% from 2022.

Liquidations of companies decreased by 15.6% (from 1 091 to 921), while the liquidations of closed corporations decreased by 9.8% (from 816 to 736).

The total number of liquidations decreased by 13.5% in Q4 2023 compared with Q4 2022 as in December, there was also a 13.8% year-on-year decrease.

Looking on a per-industry basis, the financing, insurance, real estate and business services industry saw the most liquidations in 2023, with 554 in total while the electricity, gas and water industries were the least affected, with only three liquidations over the year.

"With a quarterly contraction in real GDP already recorded in Q3 – anticipated in previous BETI reports – there is a slight possibility that the economy could have dipped into a technical recession in Q4,” BankservAfrica said.

Other nowcast indicators were also muted, with the S&P Global South Africa Purchasing Managers’ Index (PMI) dropping from 50.0 in November to 49.0 in December due to Transnet’s port crisis.

New vehicle sales also dropped in December – the fifth month in a row with full-year sales of only 0.5% in 2023 compared to 2022 and still below pre-Covid levels however, looking more positively, mining production from 3.6% in October to 6.8% in November – ahead of the consensus of 3.0% y/y from the Reuters poll.

To add to that, FNB Senior Economist Thanda Sithole said the sustained monthly momentum indicates a positive contribution to 4Q23 GDP growth as it aligns with their view that GDP likely rebounded in 4Q23 following a 0.2% q/q decline in 3Q23.