London fears Brexit ex­o­dus of bankers, in­vest­ment

Pakistan Observer - - ECONOMY WATCH -

LONDON—Will Brexit threaten London’s long-boom­ing econ­omy? The Bri­tish cap­i­tal fears in­vestors and bankers could flee the city af­ter the shock na­tion­wide vote, threat­en­ing its cov­eted rep­u­ta­tion as a global fi­nan­cial hub.

Some 60 per­cent of Lon­don­ers voted to stay in the EU in Thurs­day’s his­toric ref­er­en­dum, but the rest of the coun­try cast their bal­lots over­whelm­ingly to leave.

And the cap­i­tal’s 8.6 mil­lion res­i­dents, whose GDP is about the same as that of oil-rich Nor­way, are anx­ious about the im­pact on the city’s econ­omy.

The fear is that London will no longer be able to claim to serve as the gate­way for US and Asian busi­nesses into Europe’s vast sin­gle mar­ket.

“Some firms that saw London as a plat­form for serv­ing the in­te­grated EU mar­ket will re­lo­cate at least part of their head­quar­ters’ func­tions to other cities within the EU,” said Greg Clark of the Brook­ings In­sti­tu­tion.—AFP

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