Tag: economic outlook

June was a brutal month for global equities, capping the worst first half of a year since the launch of the MSCI All Country World Index in 1987. For indices with longer track records, the story is worse. In the case of the US S&P500, the first half performance has not been this bad since 1962.

Rising costs of living and high levels of unemployment in an unpredictable economic landscape have turned traditional financial aspirations on their head as people desperately scramble to overcome short-term challenges at the cost of long-term investments.

South African businesses that have already planned their pay increases for 2022 have some tough decisions ahead of them. This is due to rocketing inflation, fuelled by global economic turbulence and local conditions, which is only expected to worsen over the rest of the year.

The prolonged Russia-Ukraine war is ushering in a new era of volatility and possible recession for South Africa and the world. When Finance Minister Enoch Godongwana delivered his maiden budget speech in February 2022, little did he know that Russia would invade Ukraine the very next day, immediately changing both the world and South Africa’s economic outlook for 2022 and beyond.

Chief Economists from in a variety of countries globally released the Global Economic Outlook paper this week which provides detailed insights into the global obstacles and opportunities. Surprisingly, while the pandemic may not be over, the major economies are shifting their mindset and focusing increasingly on the potential risks and rewards of a more sustainable long-term recovery and route to sustainable growth.

The 2021 Budget was tabled to Parliament on 24 February 2021 by South African Finance Minister Tito Mboweni.

Moody’s and Fitch downgraded SA’s foreign-currency sovereign rating and its local-currency rating.

The rapid changes experienced over the past few months and leading to the current relaxation of lockdown levels, has resulted in the South African economy’s recovery taking the shape of a ‘swoosh’ of a fast decline then a quick recovery that will take time to be fully realised.

Some attempts have been made by the government and NGOs to advocate for more equal rights for women. Few months ago, President Ramaphosa announced his new cabinet in which half of all ministers are women. However, the private sector has been slower on the uptake. The world of business is still very much dominated by men.

The outbreak of global pandemics such as COVID-19 comes with a huge price tag. The South African Reserve Bank estimates the current nationwide lockdown will cost the economy about three weeks’ worth of GDP, or 5.8% of R5.3-trillion, which amounts to a staggering R300-billion.