Post by Logan on Jun 26, 2016 6:18:40 GMT -6
Massachusetts may soon have a Brexit problem
The Bay State may soon have a Brexit problem.
From big manufacturers to financial firms with British outposts to everyday investors watching their 401(k) plans, the Massachusetts economy is likely to be hit by the United Kingdom’s decision to leave the European Union.
The United Kingdom is a significant market for Massachusetts exports, with the sales of local products, from cranberries to candles, valued at $1.2 billion. But the Brexit vote is also rattling the rest of Europe, a much bigger market for local manufacturers.
Software, medical device, and electronics companies that sell products to Britain will most likely see the prices of their products increase as the US dollar strengthens against the pound. And demand there could drop if the British economy shrinks, as expected.
The bigger long-term fear: Brexit could trigger breakaway movements within other European countries, threatening the EU itself and creating uncertainty that could drag down the US economy. Given the unprecedented nature of Britain’s move, it’s hard to know how bad things will get.
Read more: www.bostonglobe.com/business/2016/06/24/here-how-brexit-vote-could-affect-mass-economy/UXJAD8dQbdhSnprkcAxJqL/story.html
The Bay State may soon have a Brexit problem.
From big manufacturers to financial firms with British outposts to everyday investors watching their 401(k) plans, the Massachusetts economy is likely to be hit by the United Kingdom’s decision to leave the European Union.
The United Kingdom is a significant market for Massachusetts exports, with the sales of local products, from cranberries to candles, valued at $1.2 billion. But the Brexit vote is also rattling the rest of Europe, a much bigger market for local manufacturers.
Software, medical device, and electronics companies that sell products to Britain will most likely see the prices of their products increase as the US dollar strengthens against the pound. And demand there could drop if the British economy shrinks, as expected.
The bigger long-term fear: Brexit could trigger breakaway movements within other European countries, threatening the EU itself and creating uncertainty that could drag down the US economy. Given the unprecedented nature of Britain’s move, it’s hard to know how bad things will get.
Read more: www.bostonglobe.com/business/2016/06/24/here-how-brexit-vote-could-affect-mass-economy/UXJAD8dQbdhSnprkcAxJqL/story.html