http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 17, 2012

2012 seen as make or break year for economic recovery

Back
Africa|Africa|Asia|Europe|South Africa|United States|The Cannes|University Of South Africa|Baseline World Gross Product|Product|Charlotte|Du Toit|WESP
Africa|Africa|||||||
africa-company|africa|asia|europe|south-africa|united-states|the-cannes|university-of-south-africa-facility|baseline-world-gross-product|product|charlotte-person|du-toit|wesp-radio-station
© Reuse this



The world economy was at a critical juncture with United Nation (UN) economists predicting that 2012 would be a critical year to either maintain slow economic recovery or slip back into a recession.

Persistent high unemployment, the eurozone sovereign debt crisis and premature fiscal austerity had slowed global growth over the past year and had increased the risk of another recession.

The World Economic Situation and Prospects (WESP) 2012 report, released by the UN on Tuesday, said that the baseline world gross product (WGP), based on relatively optimistic conditions, such as the sovereign debt crisis in Europe being contained, was expected to reach 2.6% and 3.2% in 2012 and 2013 respectively.

The report indicated that the failure of developed countries to maintain this growth could lead to a downside scenario of 0.5% in 2012 and 2.2% during 2013. An optimistic WGP growth prospect, which was based on policy approaches, reached 3.9% and 4% in 2012 and 2013 respectively.

The UN proposed a number of policy changes to tackle the downside risks and uncertainties leading to a recession.

Policymakers, particularly in the US and Europe, needed to deal with high unemployment rates, as well as prevent sovereign debt distress and the financial sector fragility escalating, said University of South Africa economics professor Charlotte du Toit at the launch of the report.

The high unemployment rate in most developed countries was seen as the Achilles heel of economic recovery. Currently, unemployment sits at 9% globally and, as an increasing number of workers do not have jobs over a long period, medium-term growth prospects would be affected owing to dissipating skills and experience.

“Further, the harsh fiscal austerity measures implemented in developed countries in response to high levels of fiscal deficit and public debt further weakened growth and employment prospects,” the WESP 2012 report noted.

The sovereign debt crisis in a number of European countries also worsened during the second half of 2011.

The report stated that existing national policies and the Cannes Action Plan of the Group of Twenty did not create stronger employment growth or sufficiently deal with downside risks.

The UN recommended more forceful international coordination of stimulus measures across countries and a refocus of policies to stimulate more direct job creation and investments. These measures would also require stepped-up financial sector regulatory reforms, the report added.

Meanwhile, developing countries have been the backbone of any economic growth since 2009, and were expected to continue this trend with growth rates of 5.6% in 2012 and 5.9% in 2013, said Du Toit.

Africa’s WGP was expected to grow 5% in 2012 and 5.1% in 2013, driven mostly by strong commodity prices, solid external capital inflows and continued expansion and investment from Asia.

Despite this, unemployment and poverty would remain significant challenges, caused by, besides others, a lack of diversification, shortage of skilled workers and low productivity.

South Africa was forecast for stronger economic growth with a gross domestic product of 3.7% in 2012, underpinned by favourable external demand, continued fiscal stimulus and rising consumption driven by higher wages. However, the country’s unemployment rates would only decrease marginally during 2012 and 2013, remaining above 20%.

Developing economies performed well compared with developed countries; however, even as economic ties among the developing countries strengthen, they remain vulnerable to economic conditions in the developed economies, the report said.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Trade News
Updated 4 hours ago South Africa's Imperial Holdings will buy 70% of Imres BV, a Dutch wholesaler of medical supplies, for €46-million ($58-million) in cash to expand its pharmaceutical distribution in Africa, the transport company said on Thursday. Imperial is looking to expand its...
Department of Trade and Industry export promotion and marketing chief director Zanele Sanni has invited manufacturing and advanced manufacturing companies from Shenzhen, China, to invest in South Africa, noting that Chinese investors could also access the additional...
Trade and Industry Deputy Minister Mzwandile Masina says the department has so far registered 18 qualifying black industrialists in a range of sectors to grow the South African economy. “We will continue to accept applications from industrialists, as we have set a...
Article contains comments
More
 
 
Latest News
Updated 3 hours ago The majority of the 41 signatory countries to the Organisation for Economic Cooperation and Development’s (OECD’s) Anti-Bribery Convention, adopted in 1997, have failed to clamp down on foreign bribery activities. Fifteen years after its implementation, only four...
President Jacob Zuma
Updated 4 hours ago President Jacob Zuma on Thursday revealed the composition of the new team of Ministers and business proponents set to lead the Presidential Black Economic Empowerment Advisory Council. Trade and Industry Minister Dr Rob Davies, Minister in the Presidency responsible...
Updated 4 hours ago Cabinet on Wednesday approved the retention of South African Airways (SAA) chairperson Duduzile Myeni and nonexecutive director Yakhe Kwinana, while also approving the appointment of Dr John Tambi and Anthony Dixon as board members at the troubled national carrier....
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks