The rain / pain in Spain

More on the trends in the world economy. Turmoil in the Euro area continued today with Spanish borrowing costs increasing to a new high. The Economist’s daily chart showed the spike.

The extent of the contagion was shown in Moody’s changing their outlook for the German economy to negative. And the World Bank reported a slump of consumer confidence in the Euro area.

In South Africa this meant that the Rand and local equities took some strain as investors preferred less risky assets. More broadly,

A report released by the World Bank on Tuesday said although great strides had been made in providing basic education and sanitation, this did not equate to a level playing field for everyone.

“This inequality of opportunity, particularly in the labour market, is the highest for the youngest age group,” Ambar Narayan, World Bank lead economist on poverty reduction told reporters in Johannesburg at the release of the South Africa Economic Update: Inequality of Opportunity report.

You can read more about the report’s findings here.

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