http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.04Change: -0.16
R/$ = 12.07Change: -0.10
Au 1204.60 $/ozChange: 1.40
Pt 1170.50 $/ozChange: 4.00
 
 
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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity. Blom was surprised by the recent buoyancy shown by...
JSE-listed Astrapak will sell specialised packaging systems manufacturer Knilam to Mapflex SA for R17.7-million. The proceeds would be used to reduce Astrapak’s current level of gearing.
The last of the 26 mooring units comprising the Port of Ngqura’s automated mooring system (AMS) have arrived at the port and are expected to improve port efficiency and safety, further driving the Transnet National Ports Authority’s (TNPA’s) objective of establishing...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Sappi Southern Africa CEO Alex Thiel
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.
 
 
 
 
 
 
 
 
 
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