http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 18.14Change: -0.02
R/$ = 16.07Change: -0.05
Au 1188.80 $/ozChange: -6.65
Pt 931.00 $/ozChange: -5.50
 
 
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 About 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

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
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
Updated 6 hours ago While international companies are keen to invest in South Africa, they are unable to meet the conditions of employment that have been extended to non-parties, forming part of a myriad of reasons why the the Free Market Foundation (FMF) is challenging the current...
Updated 7 hours ago South Africa- and Botswana-based research institutions have teamed up to research dynamic spectrum access and the sharing of television (TV) band frequencies using a TV white space (TVWS) experimental network. South Africa’s Council for Scientific and Industrial...
Randgold CEO Mark Bristow
Mining companies owed it to their host countries and their shareholders to invest in the troughs so that they could reap the benefits in the peaks, Randgold Resources CEO Dr Mark Bristow said on Tuesday. Speaking during a panel discussion at the 2016 Investing in...
More
 
 
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
 
 
 
 
 
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
RORY YOUNG Managed security services provide companies with a means to actively monitor their environment and ward against threats
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...
 
 
 
 
 
 
 
 
 
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 $149 Close
Subscribe Now for $149