Chart of the Week: Big pond; small fish
The UK economy is small, which may sound a little strange if you know that we have the world’s fifth-largest economy by gross domestic product. But we only contributed about 2% to global economic output last year – not enough to influence global asset prices, interest rates or the pace of global growth in any meaningful way. So the good news is that Brexit is not a globally systemic event, like the financial crisis of 2007-08 or the European debt crisis of 2011-12. Although Europe will feel a pinch, the bulk of the adjustment will fall squarely on the shoulders of the UK economy, with very little impact elsewhere. Read more about the UK’s future position on the world stage in ‘Cooling Britannia‘, an article in our latest InvestmentInsights.