http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.13Change: -0.08
R/$ = 13.60Change: -0.06
Au 1124.72 $/ozChange: 0.62
Pt 1009.00 $/ozChange: -3.00
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 12, 2012

Advanced economies holding back global growth

Back
Nedbank Group Economic Unit Senior Economist Nicky Weimar discusses South Africa's positioning in the upcoming European recession. Camerawork: Nicholas Boyd. Editing: Darlene Creamer. Recorded: 12.06.2012
 
 
 
Africa|Environment|Mining|Nedbank Group|Africa|Europe|Brazil|China|France|Germany|Greece|Indonesia|South Africa|United Kingdom|United States|Merchantec CEO Confidence|Nicky Weimar
Africa|Environment|Mining||Africa||||
africa-company|environment|mining|nedbank-group|africa|europe|brazil|china|france|germany|greece|indonesia|south-africa|united-kingdom|united-states|merchantec-ceo-confidence|nicky-weimar
© Reuse this



Advanced economies were holding back the global economic recovery with slow, staggered growth, a loss of momentum and a possible fall back into recession in Europe, said Nedbank Group economic unit senior economist Nicky Weimar on Tuesday.

Since the financial recession in 2008, global economic growth has been slow, weak and “frustrating”, she said, adding that Europe was expected to enter another recession during the third quarter of 2012.

Speaking at an economic breakfast, in Sandton, on Tuesday, Weimar said staggered growth in the US, Europe and other advanced economies, accounting for 19%, 14% and 18%, respectively, of the world’s production, had stunted consumption of production on the back of debt, uncertainty and lack of confidence.

South Africa’s growth was a function of what occurred internationally and emerging economies, which accounted for 49% of the world’s production, relied on advanced economies as the bulk consumer.

Europe remained a major trading partner for South Africa, with 70% of South African CEOs canvassed in the Merchantec CEO Confidence Index, published on Tuesday, indicating that their business was more affected by economic conditions in Europe than those in China.

While parts of the US economy look stronger, confidence was lagging with State debt at 106.6% to gross domestic product (GDP) remaining high, and the country’s residents refraining from spending in a constrained labour-tight environment.

Many countries still held high and unsustainable government debt. Greece reached a ratio of 135.2% to GDP, other advanced economies recorded a debt of 106.5% and Brazil held 65.1%. South Africa was currently holding a debt ratio of 40%, while China and Indonesia had 22% and 23.2% respectively. Weimar said that no nation should move past 60% of a debt to GDP ratio.

Further, household debt levels, while easing, were still high, particularly in the US and the UK, at 110% and 170%, respectively, of disposable income – a healthy ratio of debt to disposable income was 60%.

Recovering economic growth did not mitigate the debt created by governments to emerge intact out of the recession. Weimar said the strength of recovery was too slow to make a dent in the debt and investor confidence in bouncing back was overestimated.

In Europe, only two countries reached growth levels above their position when recession hit, namely Germany and France, while the remainder of the European countries continued dipping into recession and remained below their growth potential.

Subpar growth was also expected for other advanced economies for many years to come, said Weimar.

South Africa experienced a slow, “patchy” growth, but exports remained far below the level on which it entered the recession. The expected European recession would further strain exports during 2012.

South Africa’s growth slowed to 2.7% in the first quarter, from 3.2% in the final quarter of 2011, hit by a sharp contraction in mining.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Intellectual Property Law News
Alcatel-Lucent has organized in early July its Technology week in Nigeria. The Alcatel-Lucent Technology Week took place at a three-day event in both Lagos and Abuja. The event was well attended by over a hundred professionals from Nigeria ICT ecosystem....
If you were asked to imagine a computer network, the image that springs to mind would probably be one of a pristine office setting, where networking equipment is kept behind spotless glass doors in a dust- and temperature-controlled environment. But what of the real...
The Southern African Vinyls Association announced that Belgotex Floors has become the Association’s first official license holder of the Vinyl. product label – a mark of excellence that signifies the product complies with best practice as prescribed by SAVA’s Product...
More
 
 
Latest News
Human Settlements Minister Lindiwe Sisulu
The Department of Human Settlements (DHS) will launch 77 “catalytic projects” across the country, which will allow it to achieve its target of building 1.5-million houses over the next five years. Speaking on Thursday at a national contractors and developers workshop...
International logistics company Necotrans Group has, along with a consortium of nine Cameroonian port sector operators, the Kribi Port Multi Operators (KPMO), secured a partnership contract for the operation and maintenance of a multipurpose terminal at the...
The Gauteng provincial government’s (GPG’s) plans to transform South Africa’s most populous province into an integrated city region were gaining traction, with the GPG on Thursday outlining its plans to implement the approved e-government strategy over the next five...
More
 
 
Recent Research Reports
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Updated 5 hours ago The Health and Welfare Sector Education and Training Authority (HWSETA) has joined forces with Tshwane North Technical, Vocational and Education and Training College (TNC) to train 100 young unemployed learners as artisans, and marked this with an event that took...
JAMES TEMPLETON The increase in distribution is as a result of Emira’s acquisitive growth
Updated 5 hours ago JSE-listed Emira Property Fund reported distributions per participatory interest (PI) of 134.27 c – a distribution growth of 9% – for the 12 months to June 20, 2015.
Updated 5 hours ago Earlier this month ground broke on South Africa’s latest four star green building – the first of its kind in the Eastern Cape. The modern three-storey office block is located within the Baywest City precinct in Port Elizabeth’s western suburbs, along the N2, and...
Updated 5 hours ago South African armoured and mine protected vehicles company Denel Vehicle Systems (DVS) has won its first order since becoming part of the Denel group at the end of April. "It's a sizeable contract," reports DVS CEO Johan Steyn. "We won the contract in July. It's a...
Updated 5 hours ago South African guided weapons, unmanned air vehicles (UAVs) and space company Denel Dynamics plans to increase its revenues to more than R2-billion within five years. This was reported by company CEO Tsepo Monaheng at its annual "Show and Tell" briefing in Centurion,...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96