Although non-performing loans have increased since the international financial crisis, South African banks have made greater provision for bad and doubtful debts. As a ratio of total loans and advances, gross overdues in the banking sector came to only 4.6% in the second quarter of 2000.
In the optimistic scenario, many of these same forces break the other way. The strong rebound in world trade we have seen to date continues, and the protectionist forces that have dominated in recent years begin to fade. Unprecedented international cooperation to develop new vaccines and supply them across borders proves to be a potent demonstration of the benefits of globalization.