The document discusses factors affecting the global economy, including the Ebola outbreak, changes in China's economic growth, and the Panama Papers leak. Regarding Ebola, many countries contributed funds to curb the virus. China's economy is slowing slightly as policies aim for more sustainable growth. The Panama Papers leak revealed how offshore shell companies enable dirty money to flow globally and highlighted tax evasion by the wealthy. The effects of globalization allow capital to move freely for the rich while ordinary citizens cannot share in the same mobility.

1. Welcome to the Country
Economic Report with
Ernest

2. What is National Economy?
 The Sum of all the revenue that is generated in the country (by industry, tax
income, exports, etc.) minus the expenses of running the country, i.e. imports,
payable interests, etc.
 Simply put,
ΣAll Generated Revenue – Country’s Operational Expenses
 The Minister of Finance is tasked with reporting to the Nation, the budget drawn in
which total government spending is announced each year.
 The positive and negative growth of the economy affects each individual, and thus
it becomes a necessity to know how adversely an individual is affected.

3. Factors effecting the National Economy
 Exchange Rates Fluctuation
 Investments
 Interest Rate
 Eskom power outages
 Inflation
 Student Protests
 Taxes
 Strike actions
 Amount of government spending
 Intense Drought
 Increase or decrease in money supply
 Retrenchment Policies
 Platinum Mine Debacle: Marikana Strike action
 Etc.

4. What happens when RSA’s economy
dwindles?
Inflation
Investments
End
Exchange Rates
Fluctuate
Retrenchment
policies
Increased
unemployment
Strike
Actions
GDP
Decreases

5. South Africa: Economy Overview
 The World Economic Forum ranked South Africa 49th in its Global Competitiveness Index
out of 140 economies, up from 56th in the previous reporting period.
 It ranked the country first for strength of auditing and reporting standards as well as
financing through local equity market.
 South Africa was also ranked 12th for financial market development; it ranked 29th for
market size, 33rd for business sophistication and 38th for innovation, out of 140.
 The World Economic Forum ranked South Africa second in the world for the accountability
of its private institutions, and third for its financial market development, “indicating high
confidence in South Africa’s financial markets at a time when trust is returning only slowly
in many other parts of the world”.
 The country's securities exchange, the JSE, is ranked among the top 20 in the world in
terms of size.

6.  In the current environment, developing countries need to brace for possible shocks
by building resilience to risks to growth.
 Where they are able to boost government spending or lower interest rates, they
can provide support to economic activity.
 They can further encourage investor confidence with reforms to governance, labour
market functioning, and business environments.
 Measures to absorb young workers or to increase workforce participation will
relieve demographic pressures in many countries

7. How are we Implicated?

12. Juxtaposition of where the Rich live and the
reality of where the minority live

13. Welcome to the Global
Conversation with
Ernest

14. What is Global Economy?
 The study of international markets’ economic performance and the
policies that govern their respective governments.
 Simply put,
The comparison of global budgets in relation to earned revenues and
incurred expenses due to respectable factors such as exchange rates and
Foreign Stock Exchange.

15. Recent Factors effecting the Global Economy
 Ebola virus outrage
 Change in China’s economic climate
 Panama Papers

16. In the aid to curb Ebola, many countries pitched in to
contribute funds for the virus’ response

18. Change in China’s economic climate
 In China, policies are aimed at putting growth on a more sustainable footing and
reducing leverage in heavily indebted sectors (World Bank 2015b). In 2015, growth
eased slightly more than expected to below 7 percent, reflecting soft exports and a
slowdown in investment.
 The deceleration was especially pronounced in the real estate and manufacturing
sectors during the first half of the year. Policy support, including an easing of
financial regulations, helped stabilize the property sector in the second half.

19. Regional integration and spill-overs: East Asia
and Pacific
 Countries in East Asia and Pacific (EAP) are deeply integrated with the global
economy and with each other. China has become the largest trading partner and
source of FDI for the region, although Japan remains one of the largest sources of
FDI for several economies.
 Reflecting this integration, a growth slowdown in China could result in sizeable spill
overs to a large number of countries, while a slowdown in Japan would primarily
affect Malaysia, Thailand, and Indonesia.
 Slowdowns in major advanced economies outside the region could also have
sizeable spill overs.

23. Panama Papers..
It’s hard to know where to start in tallying up the explosive revelations in the Panama
Papers, an analysis of leaked documents from global law firm Mossack Fonseca
revealed by the International Consortium of Investigative Journalists (ICIJ).
The size of the leak is unprecedented, but the tricks Mossack Fonseca has allegedly
used for its clients are neither new nor surprising. Anonymous shell companies and the
failure of governments to require lawyers, corporate service companies, or banks to
collect beneficial ownership information on clients leave the door wide open for dirty
money to flow around the globe virtually unhindered

29. The Panama Papers have implicated the above shown and more of holding offshore
bank accounts and tax evasion.
The Panama Papers highlighted a key aspect of why the system isn’t working–because
globalization has allowed the capital and assets of the 1 % (be they individuals or
corporations) to travel freely, while those of the 99 % cannot. Globalization is
supposed to be about the free movement of people, goods, and capital. But in fact,
the system is set up to enable that mobility mainly for the rich (or for large
corporations).

30. How this directly affects me
This picture depicts the reality of how Morals are quickly ignored for financial gain.
Banks and Governments alike are happy to break the law at the expense of ordinary low-
and middle- class citizens.
Those who suffer are forced to watch helplessly and in destitute.