Economic Brexit Effects - 7/20/16
For a few days, Americans were captivated by Britain’s vote in a referendum to leave the European Union. While the economic impacts of Brexit on England and on the European continent remain unclear, there is a consensus emerging that Britain’s departure from the European Union will have only negligible impact on America.
Recently, the International Monetary Fund stated in its formal annual review of the U.S. economy that the June 23rd Brexit vote has had less impact of the value of the U.S. dollar than had been feared, and that the impact on stock markets has been remarkably benign.
According to Nigel Chalk, the IMF’s mission chief for the United States quote the net effect on growth is pretty negligible close quote. As reported by Reuters, the IMF has kept its forecast for U.S. economic growth in twenty sixteen unchanged. The IMF issued a forecast suggesting that the U.S. economy will expand two point two percent this year and two point five percent next year.
That forecast was issued a day before the British referendum. That said, there are a confluence of other forces that could weigh more heavily upon America’s economy, including rising numbers of retirees, aging infrastructure, and small productivity gains.