If you follow international politics at all, you are probably pretty concerned with the current state of affairs. Below the border, we have had to deal with the rising concern that an orange-faced megalomaniac may actually make it to the White House, threatening the stability of North America. And just as Trump's campaign starts to dwindle, showing signs that the world hasn't lost all reason, we are hit with a totally unexpected bombshell.
Across the pond, the recent debate regarding Brexit has come to fruition as voting took place yesterday, shocking the entire world as the final votes were tallied. As a referendum that was initially proposed under the assumption that it would surely fail, it appears that the UK will be leaving the European Union despite general global disapproval and projected far-reaching ramifications.
The consequences will not just impact UK citizens, but will also likely have an affect on us Canadians and the rest of the world. On the business side of things, the global markets have been in a frenzy in recent hours in reaction to the news. The British pound has fallen to an all time low since 1985, and our loonie was not immune to the pandemonium, also suffering its biggest drop in 18 months. Some economists estimate that this historic UK decision could end up cutting Canadian economic growth by as much as half for the remainder of 2016.
In the aftermath of the EU referendum, David Cameron, UK Prime Minister, has announced he will be stepping down from his position by October, after advocating strongly to remain in the EU. What does this mean for Canadians? If you have money tied up in Britain, which according to Statistics Canada, makes up 8.3 per cent of our foreign investment, your money will be in a state of instability for the upcoming months. Also, if you were planning on visiting the US this summer, hopefully you have some wiggle room for your travel budget because the US dollar just got stronger.
Whether or not significant Brexit backlash will ensue is yet to be seen, but PM Justin Trudeau has reassured Canadians that we are “well positioned” to handle any of the fallout.
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