We have been hearing the sky is falling for years now. The economy is finally on its last legs and we will all soon perish under the yoke of poverty, starvation and what have you. But is any of this true? Obviously, we have been feeling the pressure on our shrinking budgets, but is it there really no hope?
The world’s economic leaders, CEOs and academics alike, were excited in 2018. Things were looking up and we felt it here in South Africa as fuel prices dipped pleasantly for the festive season. Well Januworry has come and gone and so has that optimism. Now they are predicting a substantial lack of growth in most, if not all, of the world’s economies.
South Africa has not been as stable as it was in 2018 in a long time and the foreign investors have taken notice. A cash injection from overseas is what any of the world’s growing economies need to thrive and we did not do too badly. South Africa received $7.1 billion in foreign investment in 2018, compared to the not insignificant $1.3 billion we gained in 2017.
There is no doubt that the biggest global economies, like the USA, UK and China will continue to have an effect on us, but if we can just stay stable during and after the 2019 election there is every indication that South Africa will continue to thrive under foreign investments.
So, what does it look like for South Africa overall? We need more than foreign investment after all and people on the ground don’t really care about the big numbers. They care about how much that money in their pocket is worth. On that front, South Africa’s growth looks a little less positive. Inflation has been steadily falling since 2016 but is said to rise again in the following years.
Perhaps the 2019 elections can turn this all around. Perhaps the USA and China will make peace. Perhaps Apple will go bankrupt. These are predictions based on what is most likely and the only constant in this world is change.