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KwaZulu-Natal , driving trade and investment in South Africa. Economic overview February 14, 2012. Introduction . Present on macro-economic performance Selection of indicators that relate to IP Forum’s role Give sense of direction; possibly direct next move. Contents.
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KwaZulu-Natal, driving trade and investment in South Africa Economic overview February 14, 2012
Introduction • Present on macro-economic performance • Selection of indicators that relate to IP Forum’s role • Give sense of direction; possibly direct next move
Contents • Global economic outlook • International investment • FDI inflows and outflows • Domestic investment • Gross fixed capital formation (by sector, source, asset class) • KwaZulu-Natal investment monitor (by asset class) • Conclusions and recommendations
Global economic outlook EECs Source: IMF (2011,2012); WEO
Global economic outlook Source: IMF (2012); WEO
Global economic outlook Source: IMF (2012); WEO
Global FDI inflows (US$ bn), 2011 Source: UNCTAD (2011; 2012): FDI statistics; Global investment trends monitor
FDI inflows (% of world total), 2000—2011 Source: UNCTAD (2011); FDI statistics
FDI inflows (% of world total), 2000—2010 Source: UNCTAD (2011); FDI statistics
FDI inflows (% of world total), 2000—2010 Source: UNCTAD (2011); FDI statistics
SA FDI inflows (US$ m), 2011 SA’sFDI inflows skyrocket 269% to US$4.5bn in 2011, after plummeting 77% in 2010
Leading FDI transactions (Q1:2011) Source: UNCTAD (2012); Global investment trends monitor
Leading FDI transactions (Q2:2011) Source: UNCTAD (2012); Global investment trends monitor
Leading FDI transactions (Q2:2011 – cont’d) Source: UNCTAD (2012); Global investment trends monitor
Leading FDI transactions (Q3:2011) Source: UNCTAD (2012); Global investment trends monitor
Leading FDI transactions (Q4:2011) Source: UNCTAD (2012); Global investment trends monitor
FDI outflows (% of world total), 2000—2010 Source: UNCTAD (2011); FDI statistics
SA Quarterly Gross fixed capital formation: total (constant 2005 prices ; saa)
SA Quarterly Gross fixed capital formation: sectoral (constant 2005 prices ; saa)
SA Quarterly Gross fixed capital formation: source (constant 2005 prices ; saa)
SA Quarterly Gross fixed capital formation: asset type (constant 2005 prices ; saa)
Conclusion • Global economy still fragile (DCs sneeze, EECs catch a cold) • Why? Contagion effect (disorderly default, bank runs, runs spread, ECB powerless, German revolt, fin sys collapse, spreads globally, regression) ≈ 25% • 75%? (Euro survives, fiscal union, haircuts, rescue funds {ECB supports banks & IMF joins in}, BRICKS contribute, slow growth in US & Europe 10-15yrs 0-0.5% p.a. • Investments growing, though sluggish • The good? Emergence of new markets
Now what? KZN within SA, SA within Africa, world? • Keep eyes on the ball • Start the party (encourage domestic investment) • Diversify for increased resilience (new products and opportunities) – eyes on Africa, don’t miss the boat; financial sector spearheading venture • Improve investment climate (maintain and/or improve efficiency and competitiveness)
TIKZN Contact Details Durban: Trade and Investment House Kingsmead Office Park Kingsmead Boulevard Stalwart Simelane Road Durban, 4000 Tel: +27 (0) 31 368 9600 Gauteng: Financial Place99 George Storrar AvenueGroenkloofPretoria0181 Tel: +27 (0) 12 346 4386 www.tikzn.co.za