Brexit is Already Impacting the UK Economy

What will Brexit mean for the British economy?
Executives, forecasters and bankers have been trying to answer that question for at least two years. The U.K. government has done its own analysis, and a leaked draft Tuesday makes for ugly reading.

BuzzFeed reported that the government analysis suggests Brexit will reduce economic growth by between 2% and 8% over 15 years.



“This was initial work, not approved by ministers, which only considers off-the-shelf scenarios. No analysis was made of the bespoke [trade] arrangement we seek as a matter of government policy,” a spokesman for Prime Minister Theresa May told reporters.

But never mind the future, there’s already plenty of evidence that the June 2016 vote by Britain to leave the European Union — by far its biggest export market — is already causing damage. And that’s with at least a year of fraught negotiations on the uncertain relationship between the U.K. and EU still to come.

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