Brexit Could Cause 100,000 Jobs Lost says PWC

Leaving the European Union could cost Britain’s financial sector as many as 100,000 jobs in the coming years, according to a report published Thursday.
The sector’s contribution to the country’s GDP could shrink by as much as £12 billion ($17 billion) by 2020 if voters choose to drop out of the EU in a June referendum, the study by PriceWaterhouseCoopers said.

The report was commissioned by TheCityUK, a trade body representing the financial services industry. Its authors warned the financial sector would be hit harder than the overall economy because of its reliance on doing business with other EU countries.

The study said finance and insurance generated £65 billion in export earnings for Britain last year, nearly £2,500 per household.

“This contribution is at risk if our trading relationships with Europe and the rest of the world are disrupted by leaving the EU,” said Andrew Sentance, senior economic adviser at PwC. “The U.K. could recover some of the loss by striking new trade agreements with our EU partners and other countries, though this is not guaranteed and would take some years to negotiate.”

Vote Leave, the official campaign backing dropping out of the EU, has not responded to CNNMoney’s request for comment.

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 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.
Alfonso Esparza