The EU Referendum - The economic impact

Part of the EU Referendum series.

As was expected, in the immediate aftermath of the decision to leave the global markets suffered losses. This is expected as the markets becoming jittery about the future of the UK and its impact on the world economy, we are entering into a period of uncertainty and that will play out in the markets as I think they are going to be a rollercoaster for a while.

I am no market expert but I worry about the decline in the pound, yes, this seems good for exporters but if people are correct and a post-exit clamp-down on immigration increases wages does that not also increase the price of the goods we are exporting? Does this not also mean that we are paying more for everything that we import, effectively importing inflation?

There are rumours that several large banks will have to move staff into EU countries in order to continue trading in those countries, I am sure that there are other companies out there who will suffer. Simple things like hosting costs for start-ups are likely to increase as the main hosting providers are American and Sterling has fallen sharply against the Dollar.

My view is there are no easy fixes for this, we are entering into a period of economic instability driven by the choice of the UK citizens to vote to leave the EU. The quicker we can get to a satisfactory deal, to get politicial stability, the happier the markets will be and the better that will be for the UK.