Don’t blame Brexit for South Africa’s own economic woes

Economic commentator Chris Hart said he fears Brexit will be used to cover up South Africa’s poor economic performance, which he says is self-inflicted.

Speaking at a workshop to unpack the impact of the UK referendum that saw Britons voting to leave the European Union (EU), Hart believed the Brexit vote will be used the wrong way by South Africa.

“I fear that Brexit will be used as a cover for our own problems,” he said. “South Africa is not growing, its heading into recession – if not already in one – and it’s all self-inflicted.

“We can blame nobody else, but we probably will,” he said. “Brexit provides a wonderful cover for the fact that we have stuffed up from a policy point of view.”

Hart resigned from Standard Bank this year after becoming embroiled in a twitter race controversy and is now an independent economic analyst and director of Leapfrog Global.

Hart said markets were quite extreme in their action following Brexit, because they had a preconceived idea that Brexit had to be a bad thing.

“Speculators had their own hubris,” he said. “They all believed Brexit wouldn’t happen. They also believed it was harmful and so thought you had to take this position.”

That belief resulted in the global markets losing $3 trillion since the Brexit vote, while the pound fell to a 30-year low. The rand also dropped about 8.5% at one stage, higher than the day President Jacob Zuma fired former finance minister Nhlanhla Nene.

News24

More on the Brexit

5 ways Brexit can impact South Africa

Brexit will not lead to recession in South Africa: Reserve Bank governor

Brexit hits SA businesses with overseas operations

 

Must Read

Partner Content

Show comments

Trending Now

Follow Us

Don’t blame Brexit for South Africa’s own economic woes