17th March 2016

Brexit weighs on UK economic growth - Architas’ Nathan Sweeney

“Although the growth forecasts for the UK have been downgraded today the broad fundamentals for the UK economy remain relatively strong, including the latest positive news on unemployment released today. But as the Office for Budget Responsibility has made clear the uncertainty over the UK’s membership of the European Union is having an impact. This year we have already seen some market and currency fluctuations as a result of this uncertainty.

“While the negative impact of Brexit on UK GDP is estimated to be in the range of 2-7% over the next decade or so, the uncertainty over the eventual result is going to make this a difficult year for sterling as a currency and sterling equities. As opinion polls swing either side of a close call, over the next few months we have anticipated sterling and equity market volatility by reducing exposure to UK equities and raising our foreign currency holdings as a partial hedge.”

Brexit, Budget