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You are likely to be sick of reading about it, but you
can’t ignore it. Cherry Reynard finds out how to
prepare every area of your finances for the worst-
case Brexit scenario
Not EU again!
T
here have been votes,
some more votes, a lot
of discussion and plenty
of posturing, but in the
meantime, no-one is any the wiser
about the ultimate outcome of Brexit.
All the options from no-deal to no-
Brexit remain on the table. For those
trying to plot their finances for the
year ahead – selling a house, booking
a holiday, planning retirement – the
uncertainty is wearing.
There are a few main pressure points
for investors when contemplating a
post-Brexit future. The first is whether
it will trigger a recession, with all the
uncomfortable implications for jobs
and living expenses. There are also
potential implications for the housing
market, currency and stock markets,
all of which affect personal finances.
There are no certainties, but good
financial housekeeping can help.
Recession
During the Brexit campaign, remain
campaigners were accused of “Project
Fear” in suggesting that leaving
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Companies are committing
to move operations abroad,
threatening jobs, while
the housing market – an
important source of wealth
and confidence for the UK –
is falling
the EU would prompt a recession.
Certainly, the UK economy has
held up relatively well since the
vote, defying the worst predictions.
However, as the Brexit endgame nears,
there are signs of growing problems.
Companies are committing to move
operations abroad, threatening
jobs, while the housing market –
an important source of wealth and
confidence for the UK – is falling.
Economists estimate that the Brexit
process so far has seen the UK lose
around 2 per cent of its national
income, equivalent to £40bn a
year. This has been offset to some
extent by a relatively
strong economy, but
there are signs this is
also weakening. As
such, economists are
not optimistic about the
UK’s prospects: Azad
Zangana, senior European
economist and strategist
at Schroders, says “no deal”
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