These discrepancies illustrate the major influence of external and fiscal imbalances (the proverbial ‘twin deficits’), as well as the degree of endogenous inflation dynamics in response to external shocks. Does this mean that emerging market assets will again experience widespread differences in performance this year and the next?
This is very important as our economy, in line with global trends and the rapid advances of technology, has become more skills and knowledge intensive, with skilled workers earning a growing share of the economic cake. This trend poses a challenge given that the vast majority of South Africans experienced a history of inferior quality education.