Business Survey Estimates Brexit Lost Investment Cost at $82 Billion

Brexit was never going to be cheap.
More evidence of the cost came Monday: A third of U.K. business leaders say they have delayed or canceled investments in the wake of the vote to leave the European Union, putting at risk projects worth an estimated £65.5 billion ($82 billion).

More than 40% of large and medium sized companies have abandoned investments because of Brexit, according to a survey of senior executives commissioned by Hitachi Capital and the Centre for Economic and Business Research. The rate was 23% for smaller firms, possibly because they do less business overseas.

The sharp drop in the value of the pound was the main reason for rethinking investments, the survey found. The currency has fallen 15% against the dollar following the EU referendum, putting pressure on companies that sell products in Britain but count their profit in other currencies.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza