The total number of liquidations fell by 46.1% year on year (y/y) in January 2013‚ Statistics SA data showed on Monday (24/02/2014).
Liquidations and insolvency data are an important indicator of the scope of unpaid debt in South Africa. Analysts said weak economic growth and rising interest rates would add more pressure on businesses and limit their spending.
The number of voluntary liquidations decreased by 132‚ while compulsory liquidations increased by 19 over this period.
The largest y/y decreases in total liquidations in January 2014 related to businesses in the wholesale and retail trade‚ catering and accommodation (45 fewer liquidations); financing‚ insurance‚ real estate and business services (29 fewer liquidations); and construction (20 fewer liquidations) industries.
There was a 36.6% decrease in liquidations in the three months ended January 2014 compared with the three months ended January 2013.
The number of insolvencies decreased by 14.2% in 2013 compared with 2012.
A 3.9% decrease was estimated in the fourth quarter of 2013 compared with the fourth quarter of 2012. The number of insolvencies decreased by 4.4% y/y in December 2013. © BDlive 2013