Peterson Institute President Adam Posen once served as an external member of the Bank of England’s rate-setting Monetary Policy Committee (MPC). In this podcast, he discusses the Brexit vote and its economic implications.
Elections can sometimes have important consequences. After a bumpy 43-year relationship, a majority in United Kingdom voted to leave the European Union. The economic and trade implications will be significant—for the UK, for Europe and for the global economy. From the Asian Trade Center, this insightful piece looks at the impact of the June 23 vote on this part of the world. Written by “a sad duo at the Asian Trade Centre, Dr. Deborah Elms and Jack Coleman.”
As Britain prepares itself for the historic June 23 referendum on its membership of the European Union, an unexpected player has entered the debate: China. With Chinese businesses and the government now investing in big, lucrative projects in Britain, they’re clearly worried about the economic implications of Brexit. In recent weeks, Chinese officials and business leaders alike have become more vocal in their support for European unity (and, though they haven’t said it explicitly, for the “stay” campaign). Brookings experts reflect on how the Brexit vote might impact ties between the U.K. and China.
According to the Fung Business Intelligence Centre: Asia’s exports will be significantly hurt if Brexit triggers problems in the EU and other major economies, as the EU currently accounts for 14 per cent of their total. Asia will be less impacted by a decline in trade with the UK as the UK only accounts for a small share of Asia’s exports (e.g. 2.6 per cent of China’s total exports, 2.4 per cent of Vietnam’s total exports, and 1.0 per cent of Indonesia’s total exports). A more subdued EU economic outlook is expected to exacerbate already-sluggish demand for Chinese exports.
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