Brexit Results: Macroeconomic Risks
Russian Economic Developments. Moscow, 2016, No 7, pp. 51-53
3 Pages Posted: 28 Jul 2016
Date Written: July 28, 2016
The United Kingdom’s potential exit from the EU poses a number of macroeconomic risks. Considering the overall growth of uncertainty, the recession in the UK cannot be ruled out. The decline in capital inﬂows to the UK economy can be predicted, which could pose a threat to the stability of the balance of payments and the exchange rate of the British Pound. Obviously, the exchange of goods and services between the UK and the EU will suﬀer, as well as labour mobility and the British labour market. According to various estimates, Britain can lose up to 5% of GDP as a result of capital outflows and shrinking international trade.
Keywords: Russian economy, macroeconomic risks
JEL Classification: E31, E43, E51
Suggested Citation: Suggested Citation