If the preferential trade agreements which form the cornerstone of the EU are diminished as a result of any UK exit, this will surely have a knock-on effect here in South Africa.
The victory for the “leave” side in the British referendum is already having a negative effect on the economies of both the European Union (EU) and United Kingdom. Prior to the Brexit referendum results, the U.K. economy was expected to expand by 2 percent this year and 2.2 percent in 2017. Even under the most optimistic scenario, the U.K. economy will likely experience a mild recession.
Meanwhile, the European Union (EU) economy will not be impacted to the same degree as the British economy but the ongoing uncertainty will make annual real GDP growth of 1.6 per cent in the 2016-17 period difficult to attain.
- The world economy will expand by a tepid 2.4 per cent this year and 2.8 per cent in 2017
- The U.K. economy will likely slip into recession following the victory by the “leave” side in the recent referendum
- The Brexit should not have a significant effect on the U.S. economy. To continue reading click here…