STUART THEOBALD: Why domestic demand is less vulnerable than it once was
Diversification means that domestic wealth is not directly linked to economic performance
21 August 2023 - 05:00
One of the seldom-mentioned strengths of the SA economy is how diversified its savings pool is. Thanks to the relaxation of exchange controls over the past 30 years, South Africans have extensive assets abroad. Not only that, but many large SA companies are well diversified globally.
The result is that domestic wealth is not directly linked to economic performance. If the supply side of the economy tanks, as it is now thanks to the electricity and logistics crises, the value of assets, and therefore spending, does not plummet alongside it...
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