SA indeed at risk, warns IMF

S

Skinner

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Johannesburg - If the financial turbulence were to constrain global growth below levels currently expected, this would affect Africa through still-lower demand for its exports and likely lower commodity prices, according to the IMF's latest regional economic update for sub-Saharan Africa.

"In such a scenario, foreign direct investment, portfolio aid, and remittances inflows could fall as well," it cautions.

South Africa's current account deficit is one of the highest in the world at 7.3% of GDP - but off an all-time high of 8.9% in the first quarter.

The deficit on the trade account of the balance of payments narrowed substantially from R61.4bn in the first quarter to R31.3bn in the second.

This was as a result of improved export performance by local suppliers in the primary and secondary sectors coinciding with more subdued domestic demand.

Any slowdown globally that affects local exports and which ties in with less portfolio flows and direct investment will place unhelpful strain on the rand and current account and equity market.
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From: http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-25_2407873
 
Well seeing that FTSE dropped 8.85% today, I'd be scared....
(London dropped 21% this week compared to USA 43% this year... :eek:)
 
i went to the casino today and lost 100%
 
swim said:
i went to the casino today and lost 100%
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no, you didnt...you got a few hours of entertainment out of it, which was probably your intended purpose...same as going to the movies...pay your money, lose 100%, but get a few hours entertainment (unless you ended up at a rubbish movie)

now, roman abromavic, see...he lost this week, in the classical sense.
how much? £12billion. but he shouldnt be depressed (!), after all, it wasnt money as such..just paper losses...fictional gains that werent realised yet.
same as houses going up in price..it is only real when you sell the house for the increased price..at all other times it is just numbers you may or may not have.

still :-) £12 billion!! get in there my son!
:D
 
With the Rand slipping, our exports are getting cheaper again and imports more expensive. With little or no room in being broke, the deficit can be swung again like it did in post 2001. These swings are normal. What we need is an interest break to stop a toatal ressesion though.
 
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