Brexit bombshell – what it means for SA
Economists warn that the Brexit decision will have a negative impact on inflation and the petrol price.
THE decision by the United Kingdom (UK) to leave the European Union (EU) has sent shock waves throughout the globe, but local economists have shown concern about its impact on South Africa.
A move which has hit the markets hard, analysts this week had warned that if the UK left the European Union, it would have a negative effect on South Africa.
‘The rand is now trading almost one rand weaker. Immediately this will mean higher levels of inflation and, for instance, a higher petrol price,’ said Economist Goolam Ballim.
Economist Issaac Matshego says South Africa will also have to look at its trade relations.
‘We have to review our relations with the UK, particularity trade relations and also when it comes to issues such as visas.’
Meanwhile the rand has already been affected, and the pound has dropped to its lowest level since the 1980s.
