The second question is based on a longer-run perspective – namely, how long can China continue to enjoy its current period of high economic growth? This question is seemingly intended to draw implications from Japan’s past experience with regard to the current state of the Chinese economy, which has great importance for the U.S. economy.
South Africa’s inflation expectations may be better anchored than they were in the past, its FX liabilities may be relatively low, its banking sector may be solid, and its domestic capital markets may be deep and liquid. Yet it’s domestic GDP growth performance has been weak, contributing to relatively high fiscal and current account deficits and a relative vulnerability of South African assets.