Star 2024-01-16

These were the findings of the World Economic Forum Chief Economists Outlook yesterday GLOBAL economic growth is facing a risk of further contraction in 2024, due to tight financial conditions, geopolitical rifts and rapid advances in generative artificial intelligence (AI). These were findings of the World Economic Forum (WEF) Chief Economists Outlook released yesterday at the beginning of the week-long annual meeting in Davos, Switzerland. According to the Outlook, prospects for global growth remain subdued and fraught with uncertainty. More than half of the chief economists (56%) expect the global economy to weaken this year, while 43% foresee unchanged or stronger conditions, but 43% foresee unchanged or stronger conditions. However, a strong majority also believe labour markets (77%) and financial conditions (70%) will loosen over the coming year. Although the…

MPHO Molopyane has taken the reins as chief economist at Alexforbes, a company that is valued at R8.7 billion. The appointment became effective on December 1. Alexforbes said yesterday that Molo- pyane would be responsible for formulating the macroeconomic strategy for the business, identifying significant economic opportunities to positively influence the business, benefit their clients, and enhance their investment processes. Molopyane would also play a pivotal role in executing strategic objectives that align with the group’s vision and intent to impact, the investment group said in a statement. Unpacking Molopyane’s career, Alexforbes said she brought with her a wealth of experience and expertise acquired through her extensive career in both the finance and public sectors. “She joins Alexforbes from Absa, where she held the position of senior economist, overseeing…

THE JSE FELL to its lowest in a month yesterday and the rand remained vola- tile amid the wait-and-see approach by investors in anticipation of signifi- cant economic releases from major economies and awaited additional corporate results throughout the week. Envisioning an escape from a deeper or more prolonged recession, investors may still grapple with a moderation in global economic activity in 2024, driven by the ongoing repercussions of tight monetary policies, constrained government coffers, lingering inflation and unpredictable geopolitical events. The JSE All Share index fell by 0.9% to 73 575 points, its lowest since December 12, 2023, mainly pressured by financials and miners, in spite of the gold price rising for the third straight day. Gold rose above $2 050 (R38 159) an ounce…

McDONALD’S plans to launch 10 000 new restaurants by 2027, equating to an opening approximately every four-and-a-half hours. More than 7 000 of these establishments will be situated in expanding markets such as China, India, Japan and Brazil. If McDonald’s fast food chain is to open 10 000 new restaurants globally by 2027, it will be its fastest-ever period of growth. South Africa alone has more than 200 stores spread across the country. McDonald’s has remained largely unaffected by unstable consumer spending, thanks to affordable menu items and aggressive marketing campaigns. Last month, McDonald’s Corporation announced its ambitious new growth targets to advance its Accelerating the Arches strategy. McDonald’s President and CEO, Chris Kempczinski, said: “As I’ve said before, there has never been a better time to…

AGRICULTURAL output in 2022/23 was twice as much as in 1993/94, providing an indication of just how much the sector has grown, irrespective of the divergent views on the efficacy of government policies, said Wandile Sihlobo, the chief economist at the Agricultural Business Chamber of South Africa. He said this expansion had not only been driven by a few sub-sectors – livestock, horticulture and field crops had all seen strong growth. Some crops, most notably wheat and sorghum, had declined, but this had to do with changes in agroecological conditions and falling demand, not government policies. The higher production had been underpinned mainly by new production technologies, better farming skills, growing demand (locally and globally), and progressive trade policy. The private sector had played a major role in this progress,…

AT THE BEGINNING of a new academic year, most parents are busy with back-to-studies shopping and setting their child up for success. This is one of the most important investments that can be made. However, the reality is that most people are precluded from acquiring a tertiary education, thereby exacerbating the education divide in South Africa. To reduce the wasted cost of a high drop-out rate, parents need to be better prepared for what are several hidden costs. These costs are not only financial, but an emotional cost related to unrest on campus and the uncertainty of getting work after acquiring a hard-earned qualification in an economy with an almost 33% unemployment rate. On the face of it, a conversation about the real cost of education is all about the…