Latest news with #CarelvanAardt
The Citizen
a day ago
- Business
- The Citizen
Economists lower GDP growth forecast due to global and domestic risks
Economists have revised their expectations for GDP growth down to 1.0% in June, down from 1.5% in February. South African economists taking part in the Economist of the Year competition have lowered their GDP growth forecasts as global and domestic risks, global policy uncertainty, structural imbalances, political volatility and geopolitical risks persist. The Economist of the Year competition is hosted by the Bureau of Market Research (BMR), based on predictions submitted by 40 of the country's top economists. Each month, participating economists provide predictions on eight key economic variables, with the June 2025 consensus reflecting the latest midpoint across all forecasts. Reflecting on the deteriorating outlook, Professor Carel van Aardt, COO of the BMR, says these forecasts confirm that the South African economy remains stuck in a low-growth trap, compounded by global volatility and domestic structural deficiencies. 'Without meaningful reform and certainty in policy direction, growth will remain constrained and unemployment stubbornly high.' ALSO READ: G20 finance officials say downside risks dominate global economic outlook – IMF Re-imposition of US tariffs contributed to economists lowering their GDP growth expectations Professor Deon Tustin, CEO of the BMR, says the competition serves as a vital barometer of informed sentiment in the economic community. 'This consensus not only guides business and policy decision-making but also fosters transparent debate on South Africa's economic prospects amid turbulent global conditions.' Professor Corne van Walbeek, director of the research unit on the economics of excisable products at the University of Cape Town and member of the competition's adjudication committee, says the outlook for the domestic as well as the global economies has worsened slightly since the start of the year. 'Predictions for both gross domestic product (GDP) indicators are down by about 0.5 percentage points since February. While it is difficult to attribute this to a single cause, the re-imposition of US tariffs and general uncertainty under the Trump administration are likely contributors. 'Interestingly, expectations for household expenditure growth remain largely unchanged, while inflation predictions have dropped. The current consensus inflation rate of 3.8% sits well below the midpoint of the inflation target band, which may explain why forecasters anticipate more aggressive interest rate cuts than they did earlier in the year.' This chart shows the consensus forecast of the 40 economists:
The Citizen
02-05-2025
- Business
- The Citizen
Financial freedom takes centre stage at exclusive freedom month event at the Four Seasons Westcliff
Financial freedom takes centre stage at exclusive freedom month event at the Four Seasons Westcliff This freedom month, against the backdrop of South Africa's continued struggle for equality and prosperity, a different kind of liberation was being explored; not in the streets, but in the serene heights of Westcliff, Johannesburg. Read more: CEO of eGroupX shares vision for a financial revolution across Sub-Saharan Africa On April 25, the Four Seasons Hotel hosted an exclusive event that sought to redefine what it means to be free. Forget the political slogans and commemorative speeches, this gathering focused on achieving financial independence. Convened by financial services provider Momentum, the event brought together experts and changemakers for a morning of bold, honest dialogue around money, mindset, and success in modern-day South Africa. Under the guidance of veteran journalist and broadcaster Dan Moyane, a panel of economic thinkers and financial professionals dove headfirst into a topic still considered taboo in many South African homes: Money. Professor Carel van Aardt, of the Bureau of Market Research, set the tone with data that stunned many in the audience. Households with financial advisers have portfolios nearly ten times larger than those without. 'Financial literacy, is no longer a nice-to-have,' he said. 'It's the foundation of personal sovereignty.' Joining him were Hannes van den Berg, CEO of Consult and head of Momentum Advice, and Therese Grobler, head of wealth management at Momentum. Both stressed the urgent need for better financial guidance systems and early education. Public relations specialist Mamello Mosate brought a more personal perspective, exploring the emotional labour tied to conversations about lending money, setting boundaries, and managing expectations within families. Also read: Rethink Rands premieres at The Zone@Rosebank aiming to transform financial literacy for South African youth 'You have to be honest with yourself and others,' Mosate shared. 'Then you can begin setting boundaries without guilt.' The discussion was honest, thought-provoking, and left guests with plenty to reflect on. Once the final question was answered, and the applause faded, attendees made their way to a well-prepared brunch. As expected from the Four Seasons, the food was excellent. A fitting way to close a morning filled with meaningful conversation. Nontokozo Madonsela, group chief marketing officer at Momentum, reminded attendees of the bigger picture. 'Freedom is not enjoyable if we don't have financial independence and stability,' she said, a sentiment echoed by many in the room. The event also spotlighted the importance of financial literacy in schools. Van Aardt pointed to international examples where children are already saving for cars and homes, thanks to robust economic education programmes built on OECD principles. South Africa, he urged, must do the same if it hopes to turn its youth from consumers into future wealth builders. The event encouraged open conversations about money, as well as the importance of financial guidance and taking control of one's financial future. It was a reminder that without financial independence, freedom remains incomplete. Follow us on our Whatsapp channel, Facebook, X, Instagram and TikTok for the latest updates and inspiration! Have a story idea? We'd love to hear from you – join our WhatsApp group and share your thoughts! Related article: How to build a financial platform
Mail & Guardian
30-04-2025
- Business
- Mail & Guardian
The 9.5x difference: The importance of financial advice for South Africans pursuing financial freedom
Research conducted by the Bureau of Market Research in partnership with Momentum revealed that households working with a financial adviser accumulate investment portfolios 9.5 times larger on average than households without professional guidance. This is a striking testament to the long-term value of financial advice. The findings in the Momentum Group Financial Advice Research Report 2025 were presented at a media roundtable in Johannesburg by Professor Carel van Aardt followed by a panel discussion including the CEO of Momentum Consult Hannes van den Berg and Head of Wealth Management at Momentum Financial Planning Therese Grobler. The panel discussion was facilitated by broadcaster Dan Moyane under the theme: 'Your freedom needs your financial independence.' 'We deliberately chose the freedom weekend to have this conversation because freedom is not enjoyable if we don't have financial independence and stability,' said Nontokozo Madonsela, Group Chief Marketing Officer at Momentum Group. 'We need to make sure we have the right financial products and services that are unique to your and your family's unique context so that we set up the right legacies that will go on beyond us.' The report indicated that only 9% of South African households have a professional adviser, and households that advised themselves had the lowest wealth per household. At a time when financial uncertainty remains a top concern for many South Africans, the data presented by Professor van Aardt highlighted the transformative impact that expert advice can have on personal wealth. 'What a lot of people also don't understand that financial advice is not just about growth but also about risk mitigation which is incredibly important when it comes to finances,' said Prof. van Aardt. The insights come amidst an increasing demand for reliable financial guidance, with more households seeking long-term financial support. As South Africans contemplate financial freedom, financial independence emerges as a crucial aspect of this journey, with financial advice playing a central role rather than being a luxury. 'We, as an industry, also need to be able to influence literacy even in schools because truthfully the youth are the economy of the future. But apart from that, the earlier you start with your financial advice journey, the better. As soon as you start working, that would be the best time to engage a financial adviser' said van den Berg. According to the report, individuals tend to seek more advice when facing greater uncertainty and more difficult tasks. They are less likely to seek advice when they fear that doing so might make them appear incompetent. According to Professor van Aardt part of this is because the primary reason why a lot of people go for financial advice is pain – there are pain points in their lives. 'Another reason is when there are regulatory changes, we saw for example with the introduction of the two-pot withdrawal system a lot of people wanted to engage advisers to find out how to draw,' said Prof. van Aardt. Good financial advice isn't just about numbers, it's about having someone in your corner who understands your goals and helps you make smart, confident financial decisions. Consumers expect financial advice to be practical, transparent, and results driven. 'Context is everything when it comes to your journey with a financial adviser. Every client is different, and a professional financial adviser will provide appropriate advice for your unique circumstance, said Grobler. 'We need to dispel the myth that financial advisers tick a box with regards to their consultations and they have to meet some quota, they meet with you until they give you what is required.' Professor van Aardt added that the research showed that at times there is a disconnect between what consumers are looking for and what financial advisers are providing, putting an emphasis on context will assist the industry in getting the supply and demand equation right.
The Star
29-04-2025
- Business
- The Star
Momentum promotes financial literacy for true independence this Freedom Month
This Freedom Month, Momentum hosted a special brunch dedicated to celebrating financial independence, with conversations centred around building financial literacy and empowerment. The event gathered leading experts to unpack what success and freedom truly mean for South Africans. The panel featured Prof. Carel van Aardt from the Bureau of Market Research, Hannes van den Berg, CEO of Consult and Executive Head of Momentum Advice, Therese Grobler, Head of Wealth Management at Momentum Financial Planning, and PR specialist Mamello Mosate, with seasoned journalist and broadcaster Dan Moyane as the host. Nontokozo Madonsela, Group Chief Marketing Officer at Momentum Group, explained that the event was held during Freedom Weekend to underscore the connection between financial independence and freedom. She stressed that financial stability is a key component of true freedom, as it enables individuals to live their lives without the burden of financial uncertainty. 'We deliberately chose the freedom weekend to have this conversation because freedom is not enjoyable if we don't have financial independence and stability, We need to make sure we have the right financial products and services that are unique to your and your family's unique context so that we set up the right legacies that will go on beyond us.' Research conducted by the Bureau of Market Research in partnership with Momentum revealed that households working with a financial adviser accumulate investment portfolios 9.5 times larger on average than households without professional guidance. This is a striking testament to the long-term value of financial advice. Additionally, a report revealed that people tend to seek financial advice more when faced with uncertainty or complex decisions. However, many are reluctant to do so due to fears of appearing financially incompetent, pointing to the need for greater openness and awareness in seeking guidance. The importance of early financial literacy in schools was stressed, as the youth are seen as the future drivers of the economy. It was highlighted that the earlier individuals begin their financial journey, particularly once they start working, the better prepared they will be for financial success. Speaking to The Star, Prof. Carel van Aardt from the Bureau of Market Research emphasised the urgent need for financial literacy to be introduced in schools from an early age. He explained that teaching children the principles of financial freedom early on is crucial, especially as many young people today overlook the importance of saving. 'There are many young people who dream of starting their businesses, but they often lack basic financial skills — they don't know how to manage business finances, handle accounting, or make smart investments,' said Van Aardt. He also highlighted that financial literacy doesn't just teach money management – it empowers young people to start building real wealth. In fact, in other countries that have adopted the OECD framework for financial literacy, many young people have already begun saving for big-ticket items like cars or saving towards their first house. 'We've seen in these countries that kids who learn financial skills early are saving at impressive rates because they understand the long-term benefits,' Van Aardt shared. The insights come at a time when the demand for reliable financial guidance is rising, with more households seeking long-term security. As South Africans rethink what financial freedom truly means, financial independence and literacy have become essential pillars of the journey, and trusted financial advice is no longer a luxury but a necessity. 'What a lot of people also don't understand is that financial advice is not just about growth but also about risk mitigation, which is incredibly important when it comes to finances,' said Aardt. The Star [email protected]
IOL News
28-04-2025
- Business
- IOL News
Momentum promotes financial literacy for true independence this Freedom Month
This Freedom Month, Momentum held a brunch celebrating financial independence, focusing on the vital role of financial literacy in achieving true freedom for South Africans. This Freedom Month, Momentum held a brunch celebrating financial independence, focusing on the vital role of financial literacy in achieving true freedom for South Africans. This Freedom Month, Momentum hosted a special brunch dedicated to celebrating financial independence, with conversations centred around building financial literacy and empowerment. The event gathered leading experts to unpack what success and freedom truly mean for South Africans. The panel featured Prof. Carel van Aardt from the Bureau of Market Research, Hannes van den Berg, CEO of Consult and Executive Head of Momentum Advice, Therese Grobler, Head of Wealth Management at Momentum Financial Planning, and PR specialist Mamello Mosate, with seasoned journalist and broadcaster Dan Moyane as the host. Nontokozo Madonsela, Group Chief Marketing Officer at Momentum Group, explained that the event was held during Freedom Weekend to underscore the connection between financial independence and freedom. She stressed that financial stability is a key component of true freedom, as it enables individuals to live their lives without the burden of financial uncertainty. 'We deliberately chose the freedom weekend to have this conversation because freedom is not enjoyable if we don't have financial independence and stability, We need to make sure we have the right financial products and services that are unique to your and your family's unique context so that we set up the right legacies that will go on beyond us.' Research conducted by the Bureau of Market Research in partnership with Momentum revealed that households working with a financial adviser accumulate investment portfolios 9.5 times larger on average than households without professional guidance. This is a striking testament to the long-term value of financial advice. Additionally, a report revealed that people tend to seek financial advice more when faced with uncertainty or complex decisions. However, many are reluctant to do so due to fears of appearing financially incompetent, pointing to the need for greater openness and awareness in seeking guidance. The importance of early financial literacy in schools was stressed, as the youth are seen as the future drivers of the economy. It was highlighted that the earlier individuals begin their financial journey, particularly once they start working, the better prepared they will be for financial success. Speaking to The Star, Prof. Carel van Aardt from the Bureau of Market Research emphasised the urgent need for financial literacy to be introduced in schools from an early age. He explained that teaching children the principles of financial freedom early on is crucial, especially as many young people today overlook the importance of saving. 'There are many young people who dream of starting their businesses, but they often lack basic financial skills — they don't know how to manage business finances, handle accounting, or make smart investments,' said Van Aardt. He also highlighted that financial literacy doesn't just teach money management – it empowers young people to start building real wealth. In fact, in other countries that have adopted the OECD framework for financial literacy, many young people have already begun saving for big-ticket items like cars or saving towards their first house. 'We've seen in these countries that kids who learn financial skills early are saving at impressive rates because they understand the long-term benefits,' Van Aardt shared. The insights come at a time when the demand for reliable financial guidance is rising, with more households seeking long-term security. As South Africans rethink what financial freedom truly means, financial independence and literacy have become essential pillars of the journey, and trusted financial advice is no longer a luxury but a necessity. 'What a lot of people also don't understand is that financial advice is not just about growth but also about risk mitigation, which is incredibly important when it comes to finances,' said Aardt. The Star
