The pivotal and definitive outcome of the historic United States (US) elections for control of the White House and the Congress has wide-ranging implications for the US economy and for the rest of the world.
In commenting on the outcome of the crucial 2024 US elections, Prof Raymond Parsons, economist from the North-West University (NWU) Business School says the American electorate has spoken.
Given the fine budgetary line that still had to be walked by Finance Minister Enoch Godongwana, the first Medium-Term Budget Policy Statement (MTBPS) of the Government of National Unity (GNU) comes across as a pragmatic, realistic and credible strategy to tackle South Africa’s challenges of low economic growth and high public debt again.
“Tito Mboweni was a formidable leader, with deep economic insights that greatly shaped South Africa’s post-apartheid policies and structures, such as the South African Reserve Bank (SARB), labour law and Nedlac.”
Reacting to the death of former Finance Minister and SARB Governor Tito Mboweni, Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says he was saddened to hear of his unexpected passing over the weekend and sends his condolences to his family.
The widely expected pivot for the Monetary Policy Committee (MPC) to now commence its interest rate cutting cycle by a modest 25 basis points (bps) is good news for business and consumers.
In commenting on the decision by the South African Reserve Bank (SARB) on 19 September Prof Raymond Parsons, economist from the Business school of the North-West University (NWU), says that, although the decision remains marginal in terms of present high borrowing costs, it nonetheless represents a positive turning point in the interest rate outlook.
“After the revised zero growth (0,0%) in the first quarter of 2024, the better news is that real gross domestic product (GDP) in South Africa grew by a modest 0,4% in the second quarter of 2024.”
In commenting on the second-quarter GDP figures that Statistics SA released on 3 September, Prof Raymond Parsons, economist from the NWU Business School, says it could represent a turning point in South Africa’s business cycle, as the growth performance has clearly been too low for too long.
North West Premier Lazarus Kagiso Mokgosi has appointed Prof Raymond Parsons and Prof Mokgadi Molope from the North-West University (NWU) as members of the provincial Economic and Investment Advisory Council (EIAC). The announcement comes at a critical period in the developmental trajectory of the province, with the expanded unemployment rate stubbornly at 54%.
Much better news on the inflation front has continued to emerge with the July statistics, with a significant drop in the inflation rate from the June level.
Not unexpectedly, the latest unemployment figures for the second quarter of 2024 rose to 33,5% against the background of previous weak economic data that negatively influenced job creation.
In commenting on the release of the Quarterly Labour Force Survey for the second quarter of 2024 by Statistics SA, Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says the gross domestic product (GDP) growth figures in recent quarters have been disappointing.
Not unexpectedly, for the seventh time, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) decided by a four to two majority vote (as opposed to a unanimous decision in May) to again keep interest rates unchanged for now.
In commenting on this decision of 18 July, Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says the MPC viewed the risks to the inflation outlook as now being on the upside again and wants to see low and stable inflation entrenched at its 4,5% target.