Global Prospects and Their Likely Impact on South Africa Essay

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GLOBAL PROSPECTS AND THEIR LIKELY IMPACT ON SOUTH AFRICA INDEX: Table of Contents Global prospects and their likely impact on South Africa 1 INDEX: 1 Strength of the Recovery 2 Developed Countries: 2 Emerging Markets: 2 Risks to the Global Economy 3 Exit Strategy from Policy Stimulus 4 Repair and reform of the financial sector 4 Fiscal Crises and underinvestment in Infrastructure 4 Socio and Political Implications of Unemployment and Private Demand 5 Asset Price Collapse and the risk appetite of investors 5 Return to Previous Growth Path or Not 5 Will the current crises be “DÉJÀ VU ‘” for the world wide economy? 6 Fundamental Changes in Origins & Nature of Economic Activity 6 Global warming / Climate Change: 7…show more content…
The number of unemployed people fell by 33,000 to 2.45 million in the three months to January (compared with the previous quarter), which is the lowest level for almost a year and the largest decline over a three-month period for almost three years. Average weekly earnings also increased during the three-month period up to January 2010, namely by 1.4% (compared to a year ago), up slightly from 1.2 per cent in the quarter to December. (Roelof Botha – Macroeconomic report) Emerging Markets: Several emerging market economies are expected to return to pre-recession growth trajectories during 2010, with China and India having defied the global economic downturn altogether. CHINA China has been leading the pack of a growing number of emerging markets that are rapidly closing the GDP gap between developing nations and post-industrial economies. In mid-March, The World Bank raised its growth forecast for China for 2010 to 9.5%. In November last year, the bank’s forecast for 2010 growth was 8.7%. Other forecasting agencies are even more optimistic, with the OECD forecasting growth of 10.2% in 2010, dropping marginally to 9.3% in 2011. ( INDIA According to provisional estimates by the IMF, India’s GDP recorded a real growth rate of 5.4% in 2009 and the forecasts for 2010 & 2011 are 6.4% and 7.3%,

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