South Africa risks a second recession in consecutive years

South Africa’s economic growth prospects keep going from bad to worse. The International Monetary Fund is the latest key institution to slash its growth forecast for Africa’s most-industrialized economy, which may have fallen into its second recession in as many years. It now expects the economy to expand by 0.7% in 2019, half of what it estimated in January, and similar to forecasts by the South African Reserve Bank and Bloomberg Economics. The economy shrank the most in a decade in the first quarter of this year as the nation suffered the worst power outages since 2008. The National Treasury, which forecast growth of 1.5% in … Continue reading South Africa risks a second recession in consecutive years

Why Trump prefers Draghi over Powell

Central bankers rarely say anything that sticks in the memory. Mark Carney has been at the Bank of England for the past six years and is known as the rock star central banker, and not always in a good way. His answers to questions at press conferences are often like solos from the lead guitarist of a 1970s prog rock band: long and boring. Indeed, only two central bankers have ever come up what might be called zingers. William McChesney Martin, who ran the US central bank for almost two decades from 1951 to 1970, said the Federal Reserve was in the position of … Continue reading Why Trump prefers Draghi over Powell