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.