Is The Widely Predicted Recession In The Developed World Still Coming?

Economic data prints over the last month have been confusing to say the least – in just three weeks the picture changed completely and market sentiment with it. While our industry is known for claiming how notoriously difficult markets and macroeconomics are to predict, in January even renowned economists like Larry Summers described the global growth picture as particularly difficult to read this time around.

This is from a US perspective, but we all know that we are influenced by the American Federal Reserve monetary policy. Graphic depiction of trends.  4min read. 

Why inflation is moving in the wrong direction in South Africa

Inflation will likely be higher for longer as rising food costs and higher medical aid prices filter through the data in the coming months.

Consumer price inflation and core inflation rose in February against market expectations and after easing for three consecutive months, Stats SA reported this week.

Balanced account of the reading of inflation in SA currently. 4.5 min read with graphs.

A question for you: What does core inflation mean?

What South Africa can learn from China

South Africa and China were on the same development path until the early 1980s after which South Africa’s lack of investment in gross fixed capital formation (GFCF) delayed the country’s economic growth.

Specialist asset manager Futuregrowth said South Africa’s rate of investment in GFCF has declined for decades, while China’s has skyrocketed.

By all means let us invest in GFCF but also remember that infrastructure must be maintained, if not it begins to lose value as it loses functionality. 3 min read.

It’s Greylisting; not Blacklisting: South Africa deals head-on with Greylisting

It is one positive development for South Africa to celebrate – and there are several others – but the recent announcement that Stellantis, the umbrella automotive group housing motor car brands such as Citroën, Jeep, Opel, Peugeot, and Abarth, is planning to develop a car manufacturing facility in one of South Africa’s Industrial Development Zones (IDZ), comes as a relief for the country. This is particularly so considering the country’s greylisting by the Financial Action Task Force (FATF), only a few weeks ago.

Good news for SA’s economy! 3 min read.