I suspect we are in for a very sharp recession. Seems to me that most companies will reduce, delay or cancel investment plans until the country's future status is much clearer.
Such a drop in investment reduces economic activity and will create a technical recession at least until the first quarter next year. How long it lasts depends upon how quickly we can establish our future trading status with Europe.
Sadly and inevitably this will lead to job losses.
I have the same suspicions mate. Personally, at the last company I was working for we have already spent a lot of time planning our UK exit in consideration of this decision happening. I know many other companies across our industry have done the same.
But the job losses won't just come from finance companies leaving London. The negative effect this will have on trade and the subsequent flow in to the manufacturing industry will be felt in a variety of different towns. There is of course also likely to be a variety of other wide ranging negative economic effects beyond just the job losses.
People seem to have this idea that the UK will be fine trading wise, we were propping up the EU, we can negotiate our own better deals etc. It's very doubtful especially with they type of industries that are dominant in the UK, not to mention you don't just click your fingers and such a deal happens overnight. Realistically our best trading option is to become like Norway, an obvious concession the EU will force upon us will be contributing to the EU's budget and accepting freedom of movement. It is quite a scary thought that we could inflict such damage upon our own economy just to end up back where we started effectively.
Anyway, all of this makes for sombre reading so I won't even start on the political effects of this lurch to the far right.
