Fund Manager Says Brexit Could Slash 5% of UK GDP

April 5, 2016 Share Print 0

A British exit from the European Union will slash between 2 percent and 5 percent off the country’s gross domestic product (GDP), according to Michael Browne, a fund manager at the London-based investment management firm Martin Currie.

Browne said that a so-called Brexit would cause the same level of economic damage to the U.K. as the recessions of 1991 and 2008, hitting consumers and further weaken overseas investment in a country that has seen some promising growth since the last financial crash.

“It wouldn’t all happen overnight but that’s the sort of cost level you are looking at. You are looking at rising inflation, weaker sterling, would interest rates have to go up? Would you see a movement away, let’s say half a million people move out of the U.K., because they return home to get their jobs?,” he told CNBC Tuesday.

via CNBC

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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.