Chart of the Week: Will Brexit have a global impact?
Britain is a small, open economy. ‘Small’ may sound a bit strange when by GDP, the UK is the fifth-largest country in the world. But, in fact, we only contribute 2% of global GDP, which means that we aren’t big enough to unilaterally influence global prices, interest rates, or the global economy at all. We are a small economy and we have some big problems, but a Brexit wobble won’t derail the whole global economy. Edward Smith, Rathbones’ head of asset allocation research, discussed the UK’s post-Brexit economic standing on the world stage at our annual investment conference.