South Africans May Be Saving Too Much to Spur Growth, Absa Says

South Africans failure to break the restraint they exercised during the most financially challenging months of the Covid-19 pandemic could temper the nation’s economic growth prospects, according to Absa Group Ltd.’s acting Chief Executive Officer Jason Quinn.

Banks in Africa’s most industrialized economy last year rolled out loan-payment breaks to consumers and companies to ease the pressure of restrictions aimed at curbing the coronavirus that saw the economy contract the most in at least 27 years. Absa, South Africa’s third-largest lender, and its peers found the relief led to increased deposits as customers opted to save.