Moneyweb – Breaking news, independent analysis, latest JSE share prices, exchange rates and data on investment, finance and business in South Africa (RT @Moneyweb: Turkey and SA: a tale of two emerging markets.
Turkey – SA ” The comparison with South Africa – and with the Arab Spring protests that unseated authoritarian leaders in North Africa in 2011 – may work only so far. The demonstrations across Turkey mostly represent the secular middle classes rejecting what they see as the imposition of Islamist values. The ruling AK Party, having delivered a tripling of per capita incomes since it came to power in 2002 and restored Turkey’s investment grade rating, still enjoys broad support. South Africa’s troubles run far deeper, including falling metals prices, a largely unskilled population and youth unemployment around 50 percent. As labour unrest explodes, the ruling party, the 101-year old ANC, is increasingly unpopular. These problems put South Africa at the forefront of the selloff that slammed emerging markets last month. But what Turkey and South Africa have in common are current account deficits of more than 6 percent of their gross domestic product (GDP), the biggest among major emerging economies.
Turkey needs to find almost $50 billion this year to finance this deficit – and like South Africa, it is almost totally reliant on stock-and-bond flows to plug the gap.”
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