Date
26 May 2017
Michael Spencer (second from right) said the UK economy may suffer from short-term pain but will see some upside over the medium term. Keith Pogson (center) expects UK property markets to benefit from Brexit. Photo: Thomson Reuters
Michael Spencer (second from right) said the UK economy may suffer from short-term pain but will see some upside over the medium term. Keith Pogson (center) expects UK property markets to benefit from Brexit. Photo: Thomson Reuters

UK property market, external trade may benefit from Brexit

The United Kingdom, which voted to leave the European Union, may see some upside in its property and trade sectors over the medium term due to Brexit.

“Brexit is not necessarily a bad thing,” Michael Spencer, chief economist and head of research of Deutsche Bank in the Asia-Pacific, said in a panel discussion organized by Thomson Reuters on Friday.

Spencer said Brexit may have a negative impact on Britain’s economy over the next three to six months as its exports will suffer from rising uncertainties.

However, the country is likely to enjoy more opportunities in forming closer trade relations with countries outside Europe, he said. 

“The UK will always be a trading nation,” he said.

Spencer also said he doesn’t expect Brexit to have a strong negative impact on Asia, except for those Asian companies with heavy investments in the UK.

The weaker British pound may help attract hot money to enter the UK as the real estate market may become more attractive, said Keith Pogson, senior partner of Ernst & Young Asia-Pacific in financial services.

The hot money may help boost property prices in the UK, creating a “bouncing effect”, he said.

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Intern reporter at EJ Insight

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