The Brexit Resolve: What Does it Mean for the Global Economy?

The most recent referendum held in the UK shocked the whole world so much so that its results were subject to varied educational debates for weeks.

There have been others who are for it and there have been others who are greatly against it.

A fact still lingers though: its negative effect remains inevitable as a big chunk of the European Union have taken drastic measures to leave the long standing system.

While many have doubts on the success of Brexit, David Cameron revealed that major contingency plans are set up to face the challenges that lie ahead. It is said to lead the United Kingdom to a less predictable but more stable economic system.

KEY TAKEAWAYS:

• Many leaders that spearheaded the move still have the vote of no confidence from other economic leaders.
• The British pound has fallen to its lowest value in decades, and the U.K. was stripped of its perfect AAA credit as S&P Ratings took it down two notches to AA.
• The U.K. would seek to retain the “strongest possible” economic ties with the EU to continue and strengthen their resolve.

“Britain is leaving the European Union, but we must not turn our back on Europe or the rest of the world,” Cameron said in a speech to Parliament.

Cameron said that, although the result of Thursday’s vote had stunned the world, banks and other institutions already had prepared “robust contingency plans.”

“We are well placed for the challenges ahead,” he said. “I believe we should hold fast to a vision of Britain that wants to be respected abroad, tolerant at home, engaged in the world and working with international partners to advance the prosperity and security of our nation for generations to come.”

With this move, the world will expect major changes in the trades, industry and economic system of the UK. While we can only argue on the effects of this to the world market, let us continue hoping that it works for the better for the entire UK and the European Union.

Original Source: http://www.usatoday.com/story/news/world/2016/06/27/uk-finance-minister-tries-calm-investors/86422288/