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Brexit could hurt SA’s economic growth, warns Kganyago

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Sarb deputy governor Lesetja Kganyago. (Lisa Hnatowicz)
Sarb deputy governor Lesetja Kganyago. (Lisa Hnatowicz)

Tel Aviv - The UK’s vote to leave the European Union will hurt South Africa’s economic growth, according to Reserve Bank Governor Lesetja Kganyago.

“We would not venture into a recession at this stage, but there is no doubt that it will slow the South African economy from the weak growth that we already have,” Kganyago said in an interview with Bloomberg TV at the European Central Bank Forum in Sintra, Portugal on Tuesday.

The UK is South Africa’s fifth-largest trading partner and a slowdown as a result of Brexit may hurt demand for the African nation’s exports. The economy shrunk by 1.2% in the first quarter, as mining and farming output slumped due to low mineral prices and a drought. Gross domestic product probably expand 0.8% this year, according to the central bank, which will be the slowest pace since a 2009 recession.

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