BUSINESS DAY SPOTLIGHT
PODCAST | Economic news of the week: Why should we care about elections in the US?
Mudiwa Gavaza is joined by Prof Peter Bauer, of the University of Johannesburg’s school of economics, to discuss the issues
In this edition of Business Day Spotlight, we’re looking back the week’s top economics news.
Host Mudiwa Gavaza is joined by Peter Bauer, a professor at the University of Johannesburg’s school of economics, to discuss the issues.
Join the conversation:
With the world’s attention fixed on the counting of votes in the US presidential election, where Democratic candidate Joe Biden is taking on incumbent Donald Trump, we begin by discussing what effect that race could have on SA’s economy, and if South Africans should really care. How could a Biden or Trump victory affect SA’s economic prospects?
Bauer says the election will definitely have an effect on the local economy. Given how open SA is to international trade, the results of the election could affect trade relations with some of its major trading partners, especially the US and China.
Trump has been on a “put America first” march for the past few years, which has seen the US revisit its place in the global economy, resulting in it pulling out of international agreements such as the Paris Climate accord. Many expect that if Trump is re-elected, the US may continue such action and perhaps intensify its ongoing trade war with Asian superpower China. A Biden win is expected to reverse, or at least soften, the US’s stance on some of these fronts.
Bauer says such issues directly affect global investor sentiment around emerging-market economies, which has traditionally affected SA, either in trade or strength of the rand.
The discussion also focuses on manufacturing data through the Absa PMI released earlier this week, thoughts about ratings agency Moody’s’ take on finance minister Tito Mboweni’s recent medium-term budget policy statement and what that could mean for future ratings decisions.
With rising infections in other parts of the world such as Europe leading to a second round of lockdowns, Bauer also talks about how those developments could affect SA’s economic prospects in the future.
For more episodes, click here.
Engage on Twitter at #BDSpotlight
• Business Day Spotlight is a MultimediaLIVE production.
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.