The Australian economy will shrink by at least one per cent as a result of the United Kingdom’s decision to quit the European Union, according to a leading financial services firm.
Auditor KPMG says its best case scenario is for United Kingdom gross domestic product to shrink by three per cent as the country transitions out of the European Union, which would mean a one per cent decline in Australia’s GDP (gross domestic product) because of a deterioration in net exports.
“The implications for Australia are still being worked through, but any impact will be felt via our trade accounts,” KPMG said, adding that the worst case scenario for Australia is for a 1.4 per cent decline in GDP.
– AAP
