Pravin Gordhan reveals Brexit fears

Finance Minister Pravin Gordhan has warned that if Britain pulls out of the EU this week, it will “complicate life” for South Africa. Minister of Finance Pravin Gordhan. Picture: AFP/ Pool/ Mujahid Safodien. Brexit, which will be decided on Thursday, could have a significant impact on the global economy.

Speaking in Durban yesterday, at a function to commemorate the 70th anniversary of the passive resistance movement, Gordhan said: “It may not immediately impact negatively, especially on trade, but the uncertainty could have a serious impact on us as a country.”

Gordhan was optimistic that the economy could be pulled from the brink of recession if “we do the right thing”.

Some economists were not as optimistic. According to Efficient Group chief economist, Dawie Roodt, a global stock market crash was imminent regardless of whether Britain left the EU or not.

There were “too many signs” that the global economy was in trouble, exacerbated by political tensions and problems in the US economy, and, if it hadn’t been for the “exceptionally accommodative” monetary stance of global central banks, the crash would already have happened, he said.

Interest rates of near zero and the US Federal Reserve’s decision to hold off its tightening of monetary policy […]

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