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Economic update – A shifting global economy

Economies globally continue to adjust to what can be labelled a “new normal” as COVID-19 infections continue to rise, placing significant strain on the world as we know it. In this live-recorded webinar STANLIB’s Chief Economist, Kevin Lings, provides a brief update on recent economic developments across the globe and in South Africa, as well as his insightful views on some fundamental shifts we can expect as the world reshapes.

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Kevin Lings

Kevin Lings

Chief Economist

BCom(Hons)(Economics)

Kevin has over 30-years’ experience and is responsible for domestic and global economic research, and forecasts. Additionally, he provides input into STANLIB’s asset allocation processes and relevant economic research for our Fixed Income, Property and Equity teams.

Key takeouts 
  • Increased economic challenges faced in South Africa, resulting from the COVID-19 lockdown, as GDP levels fall, and the budget deficit worsens
  • Companies continuously need to adapt to the “new normal” as COVID-19 forces many industries to implement work-from-home protocols
  • South African unemployment figure by April 2021 projected to rise by 4% as a consequential result of the prolonged lockdown period
  • Concern about an acceleration in new and active cases within emerging economies, with South Africa preparing for peak cases in the winter season
  • Bonds have stabilised, supported by monetary stimulus, after initial liquidity driven selloff and although WGBI rebalancing may cause short term volatility, there is still value in the asset class
  • SA sectors currently offering opportunities include technology, diversified miners and insurance
  • Be selective when choosing risk assets, with preference for quality global shares

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