Following Britain’s EU referendum decision, economic fallout has been great and widespread – in Hong Kong in particular, where the country looks likely to face a recession.
So-called ‘waves of contagion’ following Britain’s decision to leave the EU are expected in Asian markets – brokerage firm Nomura has lowered its GDP growth forecast for Asia from 5.9% to 5.6%. Hong Kong and Singapore will suffer the most as a result of their open economics.
Hong Kong’s economy was already vulnerable, having contracted 0.4% in the first quarter of 2016. With the Brexit decision, this decline in market value is almost certain to continue, pushing Honk Kong into a recession. As Economics applicants should be aware, a recession is defined as two quarters of negative economic growth.
PPE applicants should consider the global implications of Brexit, and how these economic troubles have implications for political relations with Asia and other areas of the world. HSPS applicants should investigate the more localised British reaction to Brexit, and the xenophobic responses that have occurred in the wake of the decision.