Brexit shock to be centered in UK: S&P

The Brexit shock is likely to be concentrated in the UK but will have important ramifications for the rest of Europe, especially the Eurozone, S&P Global Ratings said in a report pub-lished yesterday, reports BSS.
The report titled "Europe's economic outlook after the Brexit Vote" said Brexit would produce a drag amounting to 1.2 per cent of GDP for the UK in 2017 and 1 per cent in 2018. These new estimates assume that access to the single market is maintained in 2017 and 2018, and that the Bank of England succeeds in keeping the turmoil in financial markets in check.
For the Eurozone, despite the increased uncertainties and the hit to foreign demand resulting from Brexit, we do not at this point expect the recovery to stall. However, we estimate the Brexit effect will cost the Eurozone 0.8 per cent of GDP over 2017 and 2018.

Brexit shock to be centered in UK: S&P

The Brexit shock is likely to be concentrated in the UK but will have important ramifications for the rest of Europe, especially the Eurozone, SP Global Ratings said in a report pub-lished yesterday, reports BSS. The report titled Europes economic outlook after the Brexit Vote said Brexit would produce a drag amounting to 1.2 per cent of GDP for the UK in 2017 and 1 per cent in 2018. These new estimates assume that access to the single market is maintained in 2017 and 2018, and that the Bank of England succeeds in keeping the turmoil in financial markets in check. For the Eurozone, despite the increased uncertainties and the hit to foreign demand resulting from Brexit, we do not at this point expect the recovery to stall. However, we estimate the Brexit effect will cost the Eurozone 0.8 per cent of GDP over 2017 and 2018.