There are numerous signs that global growth will finally end, according to Nick Balkin, co-manager of the R19.4bn Nedgroup Investments Stable fund.
‘We are coming out of 20 years of near-zero inflation rates (with a brief interruption in 2007, just before the global financial crisis),’ Balkin, who is also CIO of Foord Asset Management South Africa, said at a recent Nedgroup conference for intermediaries.
Balkin (pictured below) said that one of the factors that will slow global growth is that the annual trend growth in the prime working-age population in the US is to slow from 1% to 0.2% over the next 30 years. He said a tight labour market kept services inflation sticky, and wages were growing between 4% and 5%.