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Finally, our own land 2011 will be a 'choppy' year--Investec.

Asset management firm, Investec believes 2011 will likely be remembered as a choppy year due to the debt crisis being experienced in Greece and Ireland as well as the political upheavals currently at play in the Middle East and North Africa, which are likely to add to inflation as they continue to put pressure on energy prices.

But despite the ups and downs, Investec believes that 2011 should be a relatively positive environment overall for risk assets which should benefit Namibia and other emerging markets.

"The world remains in a vulnerable position. Global markets have priced in a lot of good news, despite the multitude of risks still threatening the recovery. These risks are now starting to play out resulting in skittish commodity, equity and currency markets.

"Unfortunately, the barrage of positive date surprises in recent months across the globe is unsustainable, which will mean that the favourable growth mix to which we had begun to get used to is likely to dissipate," said Vivienne Taberer, portfolio manager at Investec Asset Management during a recent media briefing.

She added that not only is debt rescheduling for Greece and Ireland's banks most likely on the cards, but the banking sector remains heavily exposed to the peripheral risks.

"Furthermore, inflation pressure is building, which should bring forward interest rate rises in the developed markets and encourage policy tightening in emerging markets. The destabilising forces in the Middle East and North Africa are also likely to add to inflation, as it will continue to put pressure

By Nyasha Francis Nyaungwa
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Author:Nyaungwa, Nyasha Francis
Publication:Namibia Economist (Windhoek, Namibia)
Date:May 20, 2011
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