Monday, June 15, 2009

Cents & Sensibility

There is evidence pointing to the fact that the global economic contagion is bottoming out. There is some sort of optimism on the distant horizon in many markets out there.
The Chinese economy is in a sound shape. In its China Economics Outlook for 2009, the Hong Kong-based Morgan Stanley Asia forecast China's baseline GDP growth would be around 7.6% percent this year, with the bull and bear scenarios projected at 9 percent and 6 percent respectively. That is pretty decent considering the acute downturn in China's exports to the west.
The Indian economy is also doing pretty fine; driven by domestic consumption and a growing middle class with a colossal appetite for the fine things of life. A 6.5% growth rate is forecasted for 2009.
Going forward, China and India are clearly two of the most important markets considering the weight they carry in global trade. After all, these two make up about half the population of the entire global village. The other BRIC economies-Russia and Brazil-are expected to record very low growth in 2010.

Commodity prices are beginning to show signs of positive momentum. So there are some indications of hope.
Having said that, it will take years before there is a complete upswing in the global economy once again. The expected growth in Africa stands around 3.5% this year. Pretty dismal!
There is, therefore, the need for nations, firms, families and individuals to continue keeping a tight budget for the foreseeable future. A cent saved here and there will ultimately bring about a relief to the many living on the borderline.
It is time to upload the austerity measures. Swap the fuel guzzler for an economy car. Cut down on your utility consumption to the barest minimum. Postpone the holiday travels. Cut out eating out altogether, if possible. Do your shopping at the cheaper alternatives.
However, in all your cuttings, make sure your life policy, retirement policy and medical aid policy are not sacrificed for comfort. You never know when you will really need them.

Finally don't forget to search within yourself for other skills you have that you could utilize to bring in the extra buck. Entrepreneurship is critical at a time like the one we are living in not just as a means of survival but most importantly for building a solid foundation for prosperity in the next cycle of boom. Where there is a will, there is always a way.

6 comments:

Adaeze said...

Good points Posekyere.
Too bad I am just about to travel to Africa in less than a month and we're building a house there, lol...that chops our money for sure for sure..and of course the villagers need a small share. We are also planning to sponsor a little girl for going to school..

I know you're into mathematics and economics but may I ask what exactly it is that you do? since I am about to get into economics i am just curious. Something tells me I've asked before and you answered me, but I think I didnt fully understand since my good memory is failing me...

blogoratti said...

Building a solid foundation for the next cycle of boom-like that*

Nana Yaw Asiedu said...

What brilliant words of wisdom in these hard times. I think I will print them out (with your permission) and read them over and over again. I, especially, am in need of financial wisdom. Thanks.

posekyere said...

Cheeeeeeeeers Adaeze!
Building a house is one of the most important investments ever.
Yes. I remember answering that question once or twice.
I am a quantitative Analyst.
I use my mathematical skills to determine the pricing, hedging parameters of derivatives; designing structred products, risk measurements and others.
So that is what I do within an investment Institution.

posekyere said...

Welcome Blogorati!
Yes. I realise you do. I suppose it is something on your mind.
I have been visiting your lovely blog now and then.
I appreciate your voyage to these shores. thank you.

posekyere said...

Thanks NY!
For a good lawyer like you there is a smooth stream of the dough, I suppose. hahaha.
Financial Advisors and brokers are critical in wealth accumulation especially at a time like the one we are passing through.
Perhaps you could see one of the guys at Databank for an investment plan. No?
Bless you, NY!