War in Ukraine | Economists wary of SA's non-aligned stance

JOHANNESBURG - An economist believes that South Africa's stance on the war in Ukraine, and the possible hosting of Russian president Vladimir Putin, could be catastrophic for the economy.

South Africa's non-aligned stance in the war in Ukraine is sparking concern at the Reserve Bank.

It believes the decision puts South Africa at risk of primary or secondary sanctions.

READ: War in Ukraine | SARB wary of SA’s non-aligned stance

The central bank says that such a situation would be catastrophic for the economy.

"This government is taking the rest of us along for the ride and it's an unpleasant ride and one that could end in tears later this year," said economist George Glynos.

"The situation is a very sensitive one, and the further we go down this road, the more dangerous it becomes, and I can assure you nobody wants to see a rand that is blowing out R21, R22 or God forbid even higher to the dollar.

"It imposes a tremendous cost in this economy, it is going to plunge the economy into a really deep recession."