MEXICO CITY, MEXICO / ACCESSWIRE / June 4, 2019 / In 2016, the United Kingdom voted to leave the European Union, with 51.9%, or 17.4 million Britons, handing the victory to the “Leave” campaigners. Depending on the way the UK manages to depart from the Union, the economic consequences might be severe, says acclaimed forex broker Pablo Soria de Lachica. The EU remains the UK’s largest trade partner and is a strong exporter of financial and business services, as about 45% of all UK goods and around 38% of total services are heading to the Union, Business Insider data shows. Since the referendum, many large financial services companies have been moving away from the City of London and are establishing headquarters in other European capitals, such as Amsterdam, Frankfurt and Paris.
Brexit’s impact on the City could be especially damaging because financial services located in London account for 6.5% of the UK’s gross domestic product (GDP). US banking behemoths Goldman Sachs, JPMorgan, Morgan Stanley, UBS and Citigroup have moved a total of $283 billion of balance-sheet assets to Frankfurt, while Bank of America has set aside $400 million to relocate its employees and business to Paris, notes Pablo
Soria de Lachica. Swiss bank Credit Suisse is moving its staff to Germany, Madrid, and Luxembourg and told its wealthiest clients to transfer their money before the UK leaves the EU. The biggest disadvantage of Brexit is that it is slowing the country’s economic growth, mostly because of uncertainty what the outcome will eventually be.
In addition to the financial services sector fleeing the country, the UK’s economy might also face harsh trade barriers depending on the arrangement between the divorcing parties. Trade between the UK and the 28 EU member states might become expensive as customs procedures, rules of origin, and limitations of goods recognition might be established. Former Chancellor of the Exchequer George Osborne predicts house prices will fall by as much as 20% along with many similar effects, whether in relation to income or jobs. “A vote to leave would represent an immediate and profound shock to our economy. That shock would push our economy into a recession and lead to an increase in unemployment of around 500,000. GDP would be 3.6% smaller, average real wages would be lower, inflation higher, sterling weaker, house prices would be hit and public borrowing would rise compared with a vote to remain,” Osborne told the BBC.
Soria de Lachica is an alumnus of Universidad Tecnológico de México (UNITEC) where he earned a master’s degree in Business Administration and specialized in international trading. A self-taught forex expert, Soria de Lachica offers his clients a wide range of trading options combined with extensive financial analysis. The author of a number of instructional texts that examine not just the basic investment principles but also advanced tips and techniques, he is a generous contributor to various organizations, including Barnardo’s, Bridges for Peace, the America-Israel Cultural Foundation, and the Jewish Federation of Greater Phoenix.
Pablo Soria de Lachica – Foreign Exchange Specialist: http://PabloSoriaDeLachicaNews.com
Pablo Soria de Lachica Explains the Ramifications of Brexit in Relation to Citizens’ Rights: https://finance.yahoo.com/news/pablo-soria-lachica-explains-ramifications-012500092.html
Pablo Soria de Lachica Analyzes the Implications of Brexit for Global Economy: https://finance.yahoo.com/news/pablo-soria-lachica-analyzes-implications-235000710.html
SOURCE: Pablo Soria de Lachica
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