~ Stokes Stage ~
Celebrating another lost year in education
There was plenty of self-congratulation when the department of basic education presented South Africa’s 2011 matriculation results earlier this year. In a less-than-polished presentation minister Angie Motshekga revealed that 70.2% of candidates had passed – up from 67.8% in 2010 – and miles removed from the 60.7% achieved in 2009. Within minutes of the presentation the champagne corks were popping. President Jacob Zuma applauded the department, labelling their achievement “a step in the right direction”. And the African National Congress (ANC) Youth League was even more complementary: “The progress made provides a very firm foundation for the intensification of teaching and learning within the context of prioritised education by the ANC.”
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~ Straight Talk ~
Insurers turn to emerging markets for new business
Website wikipedia.org defines an emerging economy as a nation exhibiting rapid growth and industrialisation. The powerhouses emerging market regions include Asia (dominated by China and India), Latin America (mainly Brazil) and Africa. Multinational businesses are flocking to these regions to benefit from some of the best GDP growth rates on offer. Insurance companies are among these 21st Century pioneers. The latest Swiss Re sigma study – Insurance in Emerging Markets: Growth Drivers and Profitability – concludes: “Insurance in emerging markets has experienced strong growth over the past decade and the outlook for the next decade remains promising.” The study focuses on Asia and Latin America which are singled out as the two fastest growing emerging market regions.
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~ featured story ~
Economists forecast lower growth through 2012
Those holding thumbs for a major economic recovery through 2012 should prepare for disappointment. At an Absa Capital presentation hosted in Johannesburg during December 2011 the group’s economists downgraded their South Africa GDP growth forecast for FY 2012 from 3.6% to just 2.8%. This adjustment comes hot on the heels of a slight reduction in their FY 2011 forecast, to 3%. “This is a meaningful change not only in magnitude but direction,” observed Head of Macro and Fixed Income Research, Jeff Gable. Last year’s economic growth was hampered by poor performances from the mining and manufacturing sectors and the loss of approximately 18 million work days to industrial action. The promising Q1 2011 quarter-on-quarter (q/q) GDP growth of 4.6% was undone by 1.3% (Q2 q/q), 1.4% (Q3 q/q) and a forecast 2.1% in the final quarter.
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