SARB Governor warns of modest growth impact from US tariffs and global factors

SOUTH African Reserve Bank (Sarb) Governor Lesetja Kganyago has warned that preliminary assessments suggested that South Africa's growth was being modestly affected by the United States’ tariffs and other external economic factors.

- SIPHELELE DLUDLA

Kganyago on Friday said that despite the US being a significant trading partner, it was Europe, China, and the Southern African Development Community (SADC) that still held the most weight in South Africa's export dynamics.

"In South Africa, our preliminary assessment is that tariffs and the other uncertainties in the global economy are causing modest damage to growth while leaving inflation broadly unchanged," Kganyago said.

"Our exports to the US mostly consist of commodities — some of which are exempted— and manufactured products such as cars. Some parts of the agricultural sector are exposed, but total agricultural exports are only about 3% of our total exports to the US."