Tag: recession

Significant uncertainty, marked by rampant inflation, fears of a looming recession and growing geopolitical risk, clouds the near-term global outlook. The knee-jerk reaction is to retreat to safe assets and preserve capital until the storm has blown over.

Central banks around the world are hiking interest rates to battle rising inflation. Recessions are now expected in the US, UK and Europe in the next year. Interest rates around the world are rising at an alarming pace, as central banks admit that inflation is becoming more ingrained, rather than just a series of transient shocks.

Economic forecasters agree that the world is currently in a stagflation cycle with the possibility of a recession on the cards and commercial property owners who don’t take appropriate action and adjust their thinking stand to lose considerable value on their investments.

As countries realise that inflation is linked to the shortfalls of globalisation, the world may see more 'slowbalisation' and 'sticky inflation'. Slowbalisation occurs when countries start diversifying their supply from single to multiple trading partners, and local manufacturers.

On Tuesday Stats SA announced that SA’s GDP had contracted 51% between April and June (using annualised quarter on quarter numbers – in other words, this is a 17% decrease for the quarter) as a result of the lockdown imposed in response to Covid-19. The contraction was shocking – but not unexpected. Given that government took the decision to implement one of the harshest and longest lockdowns globally, the severity of the economic contraction should not come as a surprise.  

Latest GDP figures have laid bare the grim reality of COVID-19’s economic effects, revealing an unprecedented 51% decline in economic activity in the second quarter of this year (quarter-on-quarter, seasonally adjusted and annualised).

SAICA hosted a webinar on 6 April 2020 where Chief Economist for Investec Bank Limited South Africa, Annabel Bishop, spoke about the effects of Sub-investment grade Status and the Coronavirus on our country’s already struggling economy.

South Africa’s latest Consumer Confidence Index (CCI) for the second quarter of 2019 shows a three point increase to 93, presenting a marginally more positive quarter on quarter picture for consumer sentiment in South Africa. 

The rise of new technologies and fin-tech has made investing simpler, more transparent and cheaper than ever before, leading many to adopt a DIY-approach to their finances. So, in a world where investing is as easy as ordering take-out, what are the dangers of self-managing your investments, and why should you consider seeking professional financial advice?

The last few months have left South Africans reeling. A volatile and unstable economy, concerns around government corruption, crime at an unsurpassed high and soaring price, are leaving citizens disheartened and concerned about their future in our country.