Global economy at a 'highly uncertain moment'

South Africa faces the same uncertainties as the global economy, as well as the effects of load-shedding, high unemployment and huge government and private sector debt 

- Dr Koos Coetzee

According to the latest International Monetary Fund (IMF) World Economic Outlook, published in April 2023, the world economy is in uncertain terrain.

Fast demand growth after COVID-19 could not be met by damaged supply chains and loss of production of some crucial commodities. This saw the highest inflation in more than a decade in most economies.

Central banks attempted to curb inflation with higher interest rates. While these only marginally affected prices, they resulted in a slowdown in economic growth and stresses in financial systems and institutions used to operating in environments with very low nominal interest rates.

As the Russia-Ukraine war continued, more contagious COVID-19 strains emerged in China, and commodity and energy prices exploded. Despite this, the global economy did show some signs of recovery.

In many countries, stronger domestic demand and activity saw positive growth in the last part of 2022 and early 2023.