Recent financial statistics indicate that South Africa may be headed for a period of slow growth. Economists observe that in 2011, what could go wrong did go wrong: the disastrous earthquake in Japan continues to have economic effects, while the Eurozone is facing a debt crisis and the United States is struggling with a slow recovery. Now these factors would appear to be affecting our economy in South Africa, where Gill Marcus, Governor of the Reserve Bank, recently cut the country’s growth forecast from 4% to 3.2%. Continue reading
Recently, the gold price broke through the $1600 level for the first time in decades. Increasing concerns about the debt crisis in Europe and a possible crisis in US debt have investors worried about the global economic recovery, while China’s growth figures have dropped for the first time in decades. Is gold a favourable investment in these uncertain times?
Recent developments in the world economy have investors worried, and the poor performance of stock indexes over the past few weeks is proof of their concern. The recent debt crisis in Europe has cast doubt over that region’s economic outlook, while the US economy showed signs of weakness in the first half of the year – fuelled by several factors including the debt talks that narrowly averted a disaster in the world financial markets. At the same time, worries over China’s economic growth and inflation problems are fuelling concern over the regional economy in Asia. Continue reading