Britain’s EU exit could hurt California exports

Britain’s EU exit could hurt California exports

California, the world’s sixth largest economy, has a lot at stake because of Britain’s recent vote to leave the European Union (EU), many economists and politicians believe.

The U.S. businesses that export and import goods and services to and from Britain and the EU have cautioned that the Brexit vote held on Thursday this week could hurt their operations.

Allan Zaremberg, the president of the California Chamber of Commerce, warned that no one in the Golden State could be immune from any dramatic changes in the global economic structure.

Speaking on the topic, Zaremberg said, “California has a lot at stake. We are the sixth largest economy in the world and a major trading and investment state, and no one in California can be immune from dramatic changes in the international economic structure.”

The Brexit vote can have several potential financial impacts on California’s economy. The Golden State’s disproportionate dependence on volatile sources of income like capital gains and the uncertainty created by Britain’s decision could hurt the state’s economy.

California Treasurer John Chiang warned that market vitality triggered by the British vote would likely be sharp until questions surrounding Brexit could be resolved over the next two years.

Britain is California’s 10th biggest export market, just ahead of the Asian countries of India and Singapore. Last year, California exported goods and services worth more than $5 billion to Britain. If the British pound remains weak after its steep decline on Friday, California exports could suffer.