I think the global market's affects on SA are somewhat of a knee jerk reaction and will play itself out. If the US does go onto recession I reckon its not all bad news for SA. Emerging markets will play a pivotal role in securing returns for those forced to look elsewhere to find them. We need to be ready to take advantage of those opportunities and quite frankly our govt should be brokering deals with major players abroad to secure investment - like the French have successfully done. If it wasnt for this elec crisis, now would be the perfect opportunity.
SA recession, well thats another story. We have no/minimal exposure to the US sup-prime crisis which bode well for the banking sector. Other major sectors are being hit by the elec crisis due to the nature of their businesses, not really the global slowdown as far as I can tell (but what do I know). Global slowdown might have an impact on exports though, to what extent I have no idea. Enough to cause a recession, I dont think so. Major cause for concern? Yes. Recession? No.
SA recession, well thats another story. We have no/minimal exposure to the US sup-prime crisis which bode well for the banking sector. Other major sectors are being hit by the elec crisis due to the nature of their businesses, not really the global slowdown as far as I can tell (but what do I know). Global slowdown might have an impact on exports though, to what extent I have no idea. Enough to cause a recession, I dont think so. Major cause for concern? Yes. Recession? No.