Brexit has negatively impacted stock markets and government bonds worldwide, while boosting gold and the US dollar. The UK economy is predicted to decline by 3.6% over two years, with higher inflation, unemployment, and lower wages and home prices. India may see a weaker rupee, higher current account deficit, and negative effects for its IT sector from reduced discretionary spending and increased costs in Britain.

1. Presentation on Implication of Brexit on World
Economy
Presented by :-Kajal Singh-16214
Ankit Singh-16235
Kovid Sharma-16030

2. Brexit Impact on global economy
 Stock market declines : The stock market declines that took place
worldwide.
 Gold is strong :It has gone up by (more than 25 percent this year)
and so is the US dollar.
 Government bonds: Even with their low returns - are looking
favorable too (No safety).
 The country's GDP could well decline by 3.6 per cent after two
years, inflation (CPI) can be higher by 2.3 per cent than the current
levels.
 Unemployment rate can increase by 160 basis points, average real
wages can contract by 2.8 per cent, house prices can deflate by 10
per cent and pound can tumble by 12 per cent.

3. Cont.….
 Britain will have a free hand to aid ailing companies or
industries without fear of EU action.
 Leaving the EU could make UK energy infrastructure
investment costlier and delay new projects at a time
when the country needs to plug a looming electricity
supply gap.

4. • Rupee becomes weaker :The rupee may become 50
paisa weaker at 66.50 per dollar by the end of the fiscal
year
• Change in current account deficit: Current Account
Deficit (CAD) will be 0.20 percent higher, reaching 1.3
percent this fiscal year.
• Inflation: Inflation will remain flat at around five percent
as subdued global growth will ensure that commodity
and oil prices remain low
• IT sector: The IT sector will face a double fall in
discretionary spending and a rise in administrative costs.
Impact on India economy