Johannesburg - The casualties of slower emerging market
growth have been the commodities markets and this makes prospects for South
Africa’s economic growth particularly worrying.
This is according to Sandy McGregor, the manager of fixed
interest and individual client portfolios at investment management company
“It increasingly looks as if we have seen the peak of the
great commodity boom which commenced in 2002 and was driven by a rapid increase
in demand in developing economies, especially China,” McGregor said in a note.
He said rising export prices have rewarded commodity
exporters such as Australia, Chile and South Africa with a decade of
But now what had been favourable had become adverse. No
longer would these countries be able to sit back complacently and allow the
rising tide of prices to carry them ever forward to increasing prosperity.
“The prospects for South Africa are particularly worrying.
While Chile and Australia have a strong skills set which will enable them to
reinvent themselves and change their focus to compensate for shrinking mining
revenues, South Africa probably lacks the skills and market flexibility to do
this,” according to McGregor.
“This is the biggest challenge our country faces because it
impacts directly on all our other problems. How will the economy grow after the
end of the commodity boom?”