Post-Brexit: Guesses & Speculations…

Economic Research	27 June 2016
US & EURO AREA
Economic Highlights
Post-Brexit: Guesses & Speculations… The “Brexit” outcome last week, though without triggering Article 50, continues to reverberate through global markets, suggesting that the situation is still fluid and that it is extremely challenging to pin down the net negative spillover beyond the UK economy. Arguably, rough initial calculations of the likely economic impact of the Brexit turmoil should at least focus on how the rest of the EU might potentially interact with the negative repercussions from the UK economy. Then, using the aforementioned results for Europe as a starting point, we attempt to calculate the likely imprint on the US economy. But the renegotiations of trade deals, passporting rights, etc by a new UK Prime Minister eventually, in light of the continuing acrimonious posture of politicians, suggest that political developments will likely dominate economic headlines (besides, with roughly 70% turnout, only slightly more than 35% of eligible UK voters actually supported an exit from the EU). Economist:  Thomas Lam  | +65 6533 0389
To access our recent reports please click on the links below: 21 June: Gauging the Pulse of the Economy… 16 June: There’s still a Chance… 06 June: Is the Sky Falling? 02 June: The Swing in Broad Market Conditions... 26 May: Tentative but Broadly In line… 19 May: Rate Hike Debate Intensifies?