Local markets are pricing in 300-basis-points of rate cuts over the next two years.
SA meets business halfway
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Mon, 15 Sep 2008 10:30
The World Economic Forum's first Financial Development Index places SA in 25th place out of 52 countries.
The survey analyses key drivers of financial system development and
economic growth in developing and developed countries.
The United States narrowly edged the United Kingdom to take the top
position. The US and the United Kingdom have close rankings, outstripping the
remaining countries in the top 10: Germany, Japan, Canada, France, Switzerland,
Hong Kong SAR, Netherlands and Singapore.
The Financial Development Report 2008, which promotes the full potential of
financial systems to drive economic growth in developing countries, provides a
ranking of 52 of the world's leading financial systems through which countries
can benchmark their performance and evaluate priorities for reform.
The rankings are based on over 120 variables spanning institutional and
business environments, financial stability, and size and depth of
capital
markets, among other factors, in assessing the complex financial systems of the
52 countries studied.
Unique measure
An important and unique measure captured by the Index includes the degree
to which businesses feel they can easily access capital.
The report draws on data taken from a variety of publicly available sources
as well as the World Economic Forum's Executive Opinion Survey.
South Africa is the highest ranked African country and comes in one place
behind China. It is followed at number 26 by Kuwait. India is at 31 on this
measure. Brazil comes in at 40, with Venezuela bringing up the rear, behind the
Ukraine.