AFP, London :
Britain’s economy was plunged into a dizzying unknown on Friday as the country lurched towards the EU exit, with the world economy bracing for a hit on growth and unemployment.
Financial markets on Friday indicated the turbulence that lies ahead for the world’s fifth biggest economy, with the pound falling to its lowest level against the dollar since 1985.
Those who voted for Britain to remain part of the EU argued long and hard about the economic risks of Brexit, but ultimately appear to have failed to convince voters.
The UK must now face up to the swirling winds of change.
In the short term, a financial storm is expected to blow far and wide from across London’s trading floors to all corners of Britain.
The many political uncertainties linked to Britain’s lengthy exit process are set to impact the country’s economy in the medium to long-term, according to experts.
The Conservative government of Prime Minister David Cameron, who campaigned for Britain to remain, warned in a report prior to Thursday’s vote that it could take more than a decade for the UK to negotiate both an exit from the bloc and new international trade deals.
The report said Britain now faces “a long period of uncertainty” that could last a decade, with heavy consequences for British businesses, trade and inward investment.
Campaigners and supporters of Brexit downplayed this and many other warnings on the economic fallout of Britain’s departure from the bloc.
Nevertheless, the World Trade Organization has predicted that British exporters risk an extra œ5.6 billion ($8.2 billion, 7.2 billion euros) of extra annual customs duties following Brexit.
Whether these are lifted during Britain’s period of transition remains to be seen, while the country’s banking and car manufacturing sectors have made it clear that jobs would have to be relocated abroad because of Thursday’s outcome.
Britain’s economy was plunged into a dizzying unknown on Friday as the country lurched towards the EU exit, with the world economy bracing for a hit on growth and unemployment.
Financial markets on Friday indicated the turbulence that lies ahead for the world’s fifth biggest economy, with the pound falling to its lowest level against the dollar since 1985.
Those who voted for Britain to remain part of the EU argued long and hard about the economic risks of Brexit, but ultimately appear to have failed to convince voters.
The UK must now face up to the swirling winds of change.
In the short term, a financial storm is expected to blow far and wide from across London’s trading floors to all corners of Britain.
The many political uncertainties linked to Britain’s lengthy exit process are set to impact the country’s economy in the medium to long-term, according to experts.
The Conservative government of Prime Minister David Cameron, who campaigned for Britain to remain, warned in a report prior to Thursday’s vote that it could take more than a decade for the UK to negotiate both an exit from the bloc and new international trade deals.
The report said Britain now faces “a long period of uncertainty” that could last a decade, with heavy consequences for British businesses, trade and inward investment.
Campaigners and supporters of Brexit downplayed this and many other warnings on the economic fallout of Britain’s departure from the bloc.
Nevertheless, the World Trade Organization has predicted that British exporters risk an extra œ5.6 billion ($8.2 billion, 7.2 billion euros) of extra annual customs duties following Brexit.
Whether these are lifted during Britain’s period of transition remains to be seen, while the country’s banking and car manufacturing sectors have made it clear that jobs would have to be relocated abroad because of Thursday’s outcome.
