Slow global growth, rising inflation the spillovers of the war and the resurgence of the pandemic are all going to be negative for South Africa, says Thabi Leoka. Out of the frying pan and into the fire is how I would describe global economies. Just a few months ago, the global economic outlook was positive. Economies were opening up after restrictive lockdown rules, which slowed productivity and trade. The US economy grew by 5.7% in 2021, the fastest pace since 1984.
In the fourth quarter of that year, real GDP increased 6.9%. The US labour market has almost recovered all the jobs lost during the pandemic, added nearly eight million jobs in two years, which amounts to 93% of all jobs lost since 2020. European economies were on the mend too, projected to grow by 4.3% in 2022 after a strong bounce back of 5.3% in 2021. Though projected growth in Europe was uneven, in the main, most countries were expected to show strong growth. Strong policy support and easing global supply constraints have supported economies in many Asian countries including Japan.
In the fourth quarter of that year, real GDP increased 6.9%. The US labour market has almost recovered all the jobs lost during the pandemic, added nearly eight million jobs in two years, which amounts to 93% of all jobs lost since 2020. European economies were on the mend too, projected to grow by 4.3% in 2022 after a strong bounce back of 5.3% in 2021. Though projected growth in Europe was uneven, in the main, most countries were expected to show strong growth. Strong policy support and easing global supply constraints have supported economies in many Asian countries including Japan.
