The world economy remains stuck ”between the ice of recession and the fire of inflation”, IMF managing director Dominique Strauss-Kahn said on Friday.
South Africa’s economy is not heading for recession, with growth still strong, boosted by robust investment growth, says the top Treasury official.
The South African Reserve Bank accumulated reserves at a faster pace in June, following two months where reserves only rose modestly.
Listed supermarket group Shoprite has cut margins on basic foodstuffs.
Investors have concerns about South Africa, former Federal Reserve chairperson Alan Greenspan told a conference in Sandton on Tuesday.
This is supposed to be India’s century, but the dangers of complacency have been starkly underlined with inflation hitting a 13-year high.
East Africa’s expanding economies unveiled spending plans geared to more growth, but will probably be dampened by food and fuel price inflation.
South Africa is fully capable of ”turning the corner” and consolidating the gains made since 1994 despite the many challenges it faces, Deputy President Phumzile Mlambo-Ngcuka said on Wednesday
It is ingrained in the national consciousness that the only way to deal with inflation is for Tito Mboweni to use increasingly large clubs to clobber the consumer with higher and higher interest rates.
With government workers asking for higher wage increases than the 10,5% announced on Wednesday, the spectre of strikes and second-round inflationary effects looms.
The Cabinet has dismissed suggestions that the government is insensitive to the plight of its employees.