Following the U.K.’s vote to leave the European Union, Florida Chamber Foundation’s chief economist Jerry Parrish recently issued a statement highlighting the vote’s impact on Florida’s economy, detailing possible effects on tourism, finance and trade.
Over 1.7 million United Kingdom citizens visited Florida in 2015, constituting approximately 40 percent of the state’s European tourists and 15 percent of all overseas sightseers.
“In fact, visitors from the U.K. make up the largest non-Canadian visitor group Florida has,” Parrish said, noting that Brexit will have repercussions in financial markets, potentially decreasing foreign investment in Florida as well as marking a likely devaluation of the British pound.
“We know from history that increases in uncertainty and volatility typically have negative effects on investment and trade,” Parrish said. “[But] there is good news for Florida’s imports. Imports from the U.K. should now become cheaper. Currently, Florida imports twice as much as it exports to the U.K.”
Parrish noted that the Euro’s value — compared to the U.S. dollar — is also likely to decline.
“Florida’s imports from Europe made up 23 percent of the total imports in 2015 – totaling $16.9 billion," he said. "Those imports should become less expensive as the Euro falls in value versus the U.S. dollar.”
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