Financial experts seemingly cannot agree on what the Brexit means for the average UK household. New research seems to indicate the tally is not positive by any means. The combined wealth of UK households accounts for a US$1.5tn deficit, all of which is a direct result of the Brexit vote outcome. With the Pound Sterling dropping 15% in value during that period, hardly anyone expected anything different.
Brexit Causes Huge Household Wealth Decline
The past twelve monthss have not been fun for UK households. Not only did the vote to leave the EU pass with flying colors, but the Pound Sterling went down a slippery slope. As a result, the national currency lost 15% of its value, ensuring UK households have less purchasing power than before.
This also marks a new record for the United Kingdom, as they are now in the top six of countries with household wealth declines. Mexico, Egypt, Russia, Ukraine, and Argentina ranked higher, but the margins are minuscule. But the most worrisome outcome is how this deficit results in a 10% household wealth decrease for the United Kingdom, which is a very steep margin.