Fund Manager Says Brexit Could Slash 5% of UK GDP

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

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.