KZN growth prospects should be bet­ter this year

Sunday Tribune - - BUSINESS REPORT - HELMO PREUSS

THE prospects for eco­nomic growth in Kwazulu-natal should be bet­ter this year than last year de­spite a mar­ginal slow­down in global growth, as the prov­ince usu­ally out­per­forms the na­tional econ­omy.

Global eco­nomic growth is fore­cast to slow to 2.9 per­cent this year from an ex­pected 3 per­cent last year ac­cord­ing to the World Bank.

In­ter­na­tional trade and man­u­fac­tur­ing ac­tiv­ity have soft­ened, trade ten­sion re­mains el­e­vated, and some large emerg­ing mar­kets have ex­pe­ri­enced sub­stan­tial fi­nan­cial mar­ket pres­sures, the mul­ti­lat­eral de­vel­op­ment finance in­sti­tu­tion said this week in its Jan­uary 2019 Global Eco­nomic Prospects re­port.

“At the be­gin­ning of 2018, the global econ­omy was fir­ing on all cylin­ders, but it lost speed dur­ing the year and the ride could get even bumpier in the year ahead,” World Bank chief ex­ec­u­tive Kristalina Ge­orgieva said.

At the Oc­to­ber 2018 In­ter­na­tional Mone­tary Fund/world Bank meet­ing in Bali, In­done­sia, sev­eral econ­o­mists warned that there would be slower growth this year than last year, mostly due to the trade war be­tween the US and China.

The SA Re­serve Bank in Novem­ber fore­cast eco­nomic growth of 1.9 per­cent for this year. “The global eco­nomic out­look is ex­pected to re­main broadly favourable over the short term. How­ever, medium-term risks are tilted to the down­side due to less syn­chro­nised global growth. This is am­pli­fied by el­e­vated pol­icy un­cer­tainty em­a­nat­ing from es­ca­lat­ing trade ten­sion, tight­en­ing global fi­nan­cial con­di­tions and ris­ing geo-po­lit­i­cal risks,” it said.

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