It’s been almost six months since Britain made the decision to exit the EU, and as U.K. government officials look to start the process as soon as early next year, it’s clear the move will continue to have huge impacts on the country and its economy.
Various industries are also feeling the pain — from manufacturing and trade, to consumer banking other financial services.
As PYMNTS reported in September, a report from KPMG revealed that nearly 75 percent of British CEOs are considering leaving their home country. Eighty-six percent of the companies surveyed, each with revenues between £100 million and £1 billion ($130 million–$1.3 billion), said they were confident about their business growth prospects, but less than 70 percent were confident about the country’s economic growth over the next few years.
It’s also expected that British households will see a cut in disposable income in 2017 as the impact of the Brexit vote could send inflation soaring and weaken the economic outlook.
Forecasts by the National Institute of Economic and Social Research (NIESR) also pointed out that real disposable incomes may be dragged down for the first time in four years by the government’s freeze on tax credit payments.
The think tank’s research showed that the U.K. could be on the verge of a recession due to the huge aftershock from the Brexit vote, The Guardian reported.
The NIESR warned that the 0.5 percent drop in real household disposable incomes next year will not only hurt the wider economy but also potentially push the GDP growth down to 1.4 percent.
But the post-Brexit news isn’t all bad — there are still many companies and industry players that have yet to turn their backs on Britain.
Just last week, Italian startup Euklid announced plans to relocate its headquarters to London and selected London-based FinTech accelerator Level39 as its new center of operations for implementing international strategies.
“London offers the ideal ecosystem,” Antonio Simeone, cofounder and CEO of Euklid, explained. “Here, we can meet the needs of new investors and rely on an innovative and efficient financial industry also thanks to a lighter regulatory environment.”
IBM also announced it will triple the number of its cloud data centers in Britain in order to meet a growing demand from its corporate and public sector clients. IBM Europe’s general manger for cloud services, Sebastian Krause, told Fortune that the investment demonstrated the size of the cloud computing opportunity and the strength of the U.K. economy.
“U.K. customers truly understand the capabilities of cloud to drive innovation, to be more flexible on their business model, to have better insight for decision making and to deliver better customer service,” he added.