Recently, a referendum was held in regard to the UK leaving or staying in the European Union.
After the results rolled in, the globe was informed that "leave" won by 52 percent-48 percent, according BBC News. This leave is known as Brexit, and it means that England will no longer be a part of the single market that the EU has become. But what exactly does that mean for the economy?
For starters, Express reported that the pound fell to a 31-year low after the initial Brexit announcement, coining its lowest level of £1.315. It's only expected that it's worth will fall even lower while months of political and economic chaos in the UK's market ensues.
Even before Brexit, retail shopping businesses saw a decline in sales due to an unusual change in summer shopping patterns. This, along with the worry of the referendum's potential decisions, caused fashion sales to experience their first decline in seven years. The Telegraph reported that fashion retailers are taking the most grief from the pound's falling worth, because the majority buy goods in Asia in exchange for dollars.
Vodafone, Britain's large telecommunications company, announced to move its headquarters out of the UK after the Brexit upset, after 30 years of founding the mobile industry. This is such a large deal due to the EU regulating the telecoms sector.
According to the Telegraph, International Airlines Group expected a decrease in sales and released a profit warning after the vote had been casted. Likewise, EasyJet expects uncertainty for travellers this summer. This business admitted it might move its base outside the UK in the future. However, it is likely that these airlines will lower fares to more destinations to gain back business.
If you're travelling on holiday, CNN News reported that it's unlikely that the EU will try to restrict you from visiting countries. It is said that the only real difference made would be that your passport gets stamped and you'd enter at non-EU citizen lines.
Because of the pound dropping, the Bank of England could face difficulties. This could result in it buying more pounds with foreign money or even raising interest rates, which could result in needing mortgages and loans, while also triggering a stock market crash.
At Sunrise Senior Living, we work with all family and residents to develop a payment plan that allows all older people the chance to live in one of our lovely care homes. If you're concerned about your money in regard to Brexit, contact us today.