SA improves global competitiveness

According to a survey from the World Competitiveness Yearbook, which is published by the Swiss-based Institute of Management Development (IMD), South Africa has climbed up in its competitive rankings in 2010 to 44th in the world following its 2009 ranking of 48th.

The survey linked the improvement in SA’s competitiveness to “the increased level of portfolio investment assets and direct investment stocks moving inward, as investors diverge to emerging markets that were not too exposed to the financial crisis”.

According to daily foreign bond and equity flows SA has already seen around ZAR50bn in portfolio flows year-to-date as compared to the ZAR39bn in inflows in the corresponding period last year.

The social consequences of the crisis will remain a long-lasting worry. Unemployment has risen to 24% in South Africa (44) and, in Spain, youth unemployment culminates at 38%; it will surpass 40% in 2010!