Economic Uncertainty Looms Ahead of Elections

Economists are cautiously optimistic about South Africa's GDP as it is expected to rebound by 0.4% in the second quarter of 2024, following a contraction in the first quarter, thanks to the suspension of load shedding and lower inflation. However, logistical challenges and uncertainties related to the upcoming elections persist, potentially hindering growth. In the U.S., a significant majority of Americans feel the country is on the wrong track, with inflation eroding real wages, contradicting claims of economic strength. Meanwhile, over half of Canadians lack confidence in avoiding a recession in 2025, driven by high living costs and interest rates that are straining household finances. Analysts warn that the U.S. economy shows signs of weakness, particularly in the small business sector, and predict that the Federal Reserve must act swiftly with interest rate cuts to avert a recession. Barry Knapp suggests that current labor trends could lead to a downturn before the upcoming elections, echoing concerns across North America about economic stability.