The UK finds itself at the epicentre of a unique economic and political experiment following its decision to withdraw from the EU. Yet, Patrick Artus, Natixis’ chief economist, believes the reaction to Brexit has been wildly over-exaggerated.
Writing for Bloomberg’s daily newsletter, Artus argues that the UK’s losses following a Brexit – notably forecasted falling UK investment and growth – will be the eurozone’s gain as investors flock to the nearest attractive destinations to secure good returns.
Artus says, “Though Brexit will cause a severe economic downgrading for the UK’s domestic performance, its impact to Europe’s economic health is minimal. So, it seems Brexit jitters may have been caused for political reasons instead.” With this in mind, he calls for investors outside London to remain calm.
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