It has been over a month since the British people voted in the referendum, and by a slim margin, the UK officially voted to leave the European Union. The Brexit – “British exit” prevailed and has left many with a bitter after taste as they worry about the uncertainty of their future.
As the world’s fifth-largest economy, since day one the effect of opting out of the EU has had broad based negative effects on the British economy and has left a nation divided after the marginal victory of 52% to 48%. The Brexit vote, originally designed to ensure stability and security for a continent that has suffered from economic troubles for the past decade, sent global markets crashing over the potential dismantling of a union.
As a result the first direct reflection of business sentiment in Britain, a leading business group said that 20 percent of its members plan to move some of their operations outside of the U.K. in light of the country’s decision to leave the EU. Such would be a devastating blow to the economy. The Brexit vote also delivered a big dose of uncertainty and the markets show it. Buying, selling, lending and investing all just got riskier. Holders in the market are spooked yet buyers get the advantage of looking forward to lower loan interest rates. It’s no surprise then that even daily life has even hit home. Studies released by Mayfair Granite show how even daily life projects such as renovation on a home has shifted. They reported that 29% of those polled would look to put off projects of this type over the summer due to market uncertainty.
The referendum will be considered official only once Article 50 of the Treaty of the European Union is passed. This act is entirely up to British officials, and although many British citizens remain optimistic, it is highly unlikely for Brexit to not go through. Chief economist Bill Stone, in a Forbes interview remains hopefully stating that “Public support for Brexit could falter, allowing the U.K. to rescind its decision to withdraw”. Many predict that the outcome of this Brexit will render a domino effect with Italy, Greece, Spain and Portugal as they closely monitor the UK in the following months. Only time will tell how it plays out.