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Archive for the ‘World News’ Category

Later today South Africa will kick off Africa’s first ever FIFA World Cup. Up against a well balanced Mexican side South Africa will have their work cut out for them.

In the 4 meetings between the sides Mexico hold a 2-1 win lead over South Africa, however in their most recent meeting in the 2005 CONCACAF (Confederation of North, Central American and Caribbean Association Football) Gold Cup, South Africa beat Mexico by 2 goals to 1.

South Africa’s strengths lie in their pace on the flanks. The likes of Siphiwe Tshabala and Tsholofelo Modise can make the difference on the outside for Bafana Bafana. Steven Pienaar in midfield for South Africa is going to the man to watch. His key battle with veteran defender Rafael Marquez is probably the most significant. Second to that would be Aaron Moekena and Carlos Vela’s battle. The South African captain is a strong defender but will have his hands full with the young Mexican striker who, on his day, can play impeccable football.

Mexico are slight favourites to win this encounter based on their fast paced play and their super experienced back line, but I’ve got a feeling that Bafana Bafana might just be able to sneak a win. Having put 5 past Guatemala without conceding and beating Denmark 1-0, Bafana Bafana are fired up and stand a good chance of getting an emphatic victory sending this rainbow nation into a Vuvuzela frenzy!

It would appear that a turn away from the worst has been made. July 2009 looks to be the date where economic recovery can be seen in most sectors throughout the world.

July saw global income turn positive as well as global industrial production. Overall output in economy also turned positive.

The ERCI indicators have been very strong since July and this appears to be the start of market recovery.  It will however be a fair while until the economy recovers fully and we will more than likely feel the economic downturn well into the next financial year and perhaps even into the following in some cases.

This recession has been the worst for South Africa in 17 years. Seasonally adjusted GDP shrank by 3.0 percent in the second quarter as compared to 6.4 percent in the first quarter.

The recovery of South Africa’s economy will however lag others, after several developed countries saw second quarter growth.

Labour market conditions are not showing signs of improvement yet and remain fragile. Unemployment is still a major risk. South Africa’s unemployment rate ticked up to 23.6% in the second quarter of 2009 which stands as testament to South Africa’s lagging recovery.

Recovery is not yet established and market conditions are still vulnerable. “Conditions for a sustained recovery, led by private demand, are not yet fully established.” said US Treasury Secretary Timothy Geithner.  In another statement he said that global economic growth was “under way”, but there remains “significant challenges” ahead.

It appears that although economic upswing is on the cards many remain cautious.  In a communiqué released from G20 finance ministers in London 10 October this caution is clear to see.

“We will continue to implement decisively our necessary financial support measures and expansionary monetary and fiscal policies… until recovery is secured.”

Recovery can only be secured in one way say some. In order to speed up economic recovery lending activity has to pick up between businesses and banks. They reason that this will encourage enterprise spending which will lead to an increase in employment. That in turn will then drive retail sales. And so the begin of the global economic recovery.