More Brexit blues
The summer’s shock Brexit vote has wiped off £1.2 trillion from UK households’ wealth, a new report has found.
British households are now 10 per cent poorer, the Credit Suisse Global Wealth Report 2016 revealed. This is “ a direct consequence of the Brexit vote”, it said.
The report added: “The stock market recovered later, but the outlook is very uncertain, both for the economy and household wealth.
“Nevertheless, as of the end of June, wealth per adult in pounds sterling was 6 per cent above its level a year earlier.”
Britain saw its total wealth reducing much more than other countries including Taiwan, Malaysia, Colombia and Turkey. Out of all countries Argentina fared the worst due to shifting exchange rates while Japan and New Zealand saw the biggest increase in wealth.
Michael O’Sullivan from Credit Suisse, said: “The impact of the Brexit vote is widely thought of in terms of GDP (gross domestic product) but the impact on household wealth bears watching.
“Since the Brexit vote, UK household wealth has fallen by $1.5tn. Wealth per adult has already dropped by $33,000 to $289,000 since the end of June.
“In fact, in US dollar terms, 406,000 people in the UK are no longer millionaires.”
Oxfam spokesman Sally Copley said: “The wealthiest one percent of the population – who own nearly a quarter of all the country’s wealth – continue to do well whilst so many people in Britain are just about managing to stay above the poverty line.”