Urgent Report: Japan's Economy after Brexit
If repercussions are in the same class as the global financial crisis of 2008, Japan’s real GDP could drop by as much as 1%.
July 07, 2016
Summary
◆A national referendum was held in the UK on June 23rd to determine whether or not the citizens of that country would prefer to withdraw from the EU. The results of the vote found that the majority of citizens choose to leave behind membership in the EU (or “Brexit” as it has come to be known).
◆In this report we provide estimates of the effects of Brexit on Japan’s economy calculated using the DIR short-term macro model. Our conclusion is that, assuming repercussions are in the same class as the global financial crisis of 2008 with falling stock prices, yen appreciation and a shrinking global economy, Japan’s real GDP could drop by as much as 1.11% in comparison to the benchmark.
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