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Brexit Could Have Negative Impact on Direct Investments in UK Economy

© AFP 2023 / Chris J RatcliffePro-Brexit flags fly from a fishing boat moored in Ramsgate on June 13, 2016.
Pro-Brexit flags fly from a fishing boat moored in Ramsgate on June 13, 2016. - Sputnik International
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Potential exit of the United Kingdom from the European Union could have a negative impact on direct investment decisions in country's economy, a recent report of the London-based strategic advisory firm said.

Sign supporting a British exit from the EU - Sputnik International
If EU Fails to Deal With 'Shock of Brexit' Germany May be Next to Leave
MOSCOW (Sputnik) — On Monday, Global Counsel issued a report dubbed The Consequences of the EU Referendum, which predicts the possible effects of referendum on EU membership both in case of Brexit and if UK voters decide to stay in the 28-nation bloc.

"The combination of political instability in the UK, political uncertainty across Europe, and a messy withdrawal process would exacerbate the impact of a vote to leave on financial markets. The signals are already there with sterling under pressure and gilt yields and equity prices falling as the opinion polls have narrowed… Looking beyond the macro data the most immediate and tangible signs that Brexit would have structural implications for the UK economy would be from direct investment decisions," the report said.

The report added that the firm did not expect that major companies would make any "hard-to-reverse decisions precipitously," but Brexit several high-profile investment decisions would certainly be affected.

On Thursday, voters across the United Kingdom will take part in a referendum to decide whether or not the country should exit the European Union.

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