Brexit impact on global growth – Westpac

Richard Franulovich, Research Analyst at Westpac notes that Westpac’s North American clients suggests that for many the trade hit stemming from a weaker UK economy is negligible, UK exports representing just 0.3% of US GDP, a manageable 2.9% of German GDP and 1.4% of French GDP.

Key Quotes

“A hit to business confidence can be expected and tighter financial conditions could be a problematic for the US (higher USD) and the Eurozone (wider peripheral spreads) but stresses are not close to even matching the dislocations seen in recent years when the Eurozone crisis was still grumbling. The hit to Europe and the US was overall considered modest and unlikely to derail growth significantly.”