Step right up folks and welcome to the 2024 Global Economic Carnival! The prices were soaring higher than a circus tent in a windstorm, and the interest rates? Well, let’s just say they had reached dizzying heights that even a tightrope walker might reconsider. With household incomes trailing behind, we were all eyeing the looming cost-of-living crisis hoping we don’t plummet into the deep end. And in the distance, government balance sheets were bloated. After the pandemic left the coffers emptier than a popcorn stand at closing time, debt-to-GDP ratios were at highs and debt servicing costs were gobbling up precious funds that could’ve gone to vital social programs.
Now, onto the main attraction. The election of the new "ringmasters" were coming up and everyone was getting ready to cast their votes and air their grievances in true carnival fashion, loudly and with flair. Argentina had bought tickets to the BRICS expansion party but fell ill from geopolitical risk fever and decided to excuse itself from the makers of the new world order. We had to buckle up, it was going to be a mixed bag of thrilling and terror! With economic growth as sluggish as a carnival carousel stuck halfway through its ride, it was shaping up to be a rough year for politicians. And let’s not forget, the opposition was already busy writing their "things have gone terribly wrong" campaign slogans, extra emphasis on the "terribly".
There was a silver lining peeking through the cotton candy clouds. Inflation was finally taking a bow, trending downward, and interest rate cuts were firmly on the horizon. Meanwhile, the labor market was hanging in there like a circus performer on a trapeze-resilient and defying the odds. A global recession? Averted, for now at least. And as if the carnival needed more excitement, Bafana Bafana, after what seemed like a never-ending slump, grabbed a bronze medal at the Africa Cup of Nations. Could this be the sign of a South African economic comeback? Stay tuned, because the crowd’s already buzzing.
The super election year had arrived and with it came a show filled with enough fireworks to rival a New Year’s celebration-uncertainty, drama, and all the unexpected twists that come with it. So, grab your popcorn, pull up a seat and prepare for the ride of a lifetime. Will the new ringmasters steer this carnival toward a smoother path, or are we in for a few more bumps along the way? One thing’s for sure, this year’s economic carnival promised to be a wild and unpredictable ride.
Let the games begin!
This article originally appeared in the Market Update mailer by Yonelisa Ndyamboti, on 09 December 2024.