The increased productive capacity in China and other parts of Asia can be seen as part of the mechanism by which their trade and current account surpluses have been exerting downward pressure on global inflation.
But the expected increase in the economic growth rate from last year’s paltry half-a-percent will fall far short of the levels needed to make inroads into South Africa’s high unemployment rate. Many of our people remain poverty-stricken, living below the breadline in makeshift shacks that do little to keep out the winter cold.