KPMG Global Economic Outlook indicates that South Africa is in need of a growth mandate
22 November 2021 – Johannesburg, Chief Economists from KPMG firms in a variety of countries globally released their Global Economic Outlook paper this week which provides detailed insights into the global obstacles and opportunities. Surprisingly, while the pandemic may not be over, the major economies are shifting their mindset and focusing increasingly on the potential risks and rewards of a more sustainable long-term recovery and route to sustainable growth.
Says Frank Blackmore, Lead Economist at KPMG South Africa; “If we look at South Africa in the global context, there is no doubt that we need to consider a growth mandate. If we look at the US, China and Japan for example, the economic outlook is positive - driven by consumer spending, industrial production and easing of supply chain disruptions, among other factors. Similarly, India – most closely aligned to South Africa – has seen a rapid increase in vaccine coverage, a related, benign monetary and financial conditions, and buoyant external demand which is pushing them towards more rapid economic recovery.”
“South Africa is in a largely different position having historically had the challenge of needing to focus on the long-term goal of economic growth and employment creation, while on the other hand, needing to also deliver a shorter-term goal of expanding the social wage/safety net for those that would have missed being absorbed into the economy,” continues Blackmore.