The Water Wheel March-April 2016

Abstract

Fluid Thoughts WRC CEO, Dhesigen Naidoo We are at the beginning of 2016 caught in a fearful gridlock of strategic contradictions. On the one hand we are in one of the tighter economic contractions in recent history, characterised by some of the lowest growth rates in modern times with the general scent of austerity accompanying most national budget policies – around the world. Much of the global economic woes are laid at the doorstep of China’s declining growth rate, the lower prediction, from The Conference Board1 of which is 3.7% in their “Global Economic Outlook 2016” (the IMF forecast is 6.3%2). Of course in the same report, the USA is described as “a bright spot in a weak global economy” with a predicted growth rate of 2%. The general commentary points to an increased Sinoconsumption pattern as a core remedy to the global economy. This of course is a vicious circle. China’s consumption patterns depend intimately on its earnings from exports.

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