How Has 2016 Been for Business as a Whole?

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It’s fair to say 2016 has been a mixed year for businesses. Whatever your position may be, though, there’s no doubt that this year has also been home to two of the most significant events for businesses in recent memory. The results of both the UK referendum and the most recent US election shocked experts all around the globe. Here’s how they could shape the near future.

The UK Referendum

The UK’s decision to leave the EU was met with disbelief at the time, with the majority of pollsters before the final event predicting the wrong result. It’s important to remember that the UK has not left the EU yet. We’re still waiting for Prime Minister Theresa May to trigger Article 50, which she has said she intends do by the end of March 2017. This will give the two sides another two years to agree the exact details of the split.

Nevertheless, we can expect to see some significant consequences of the decision occur before the separation has formally took place. The International Monetary Fund has predicted the UK will be the fastest growing of the G7 leading industrial countries this year. However, despite the 1.8% growth that is expected to come, the IMF added that it expects the results of the Brexit vote to hit home next year with growth dropping to just 1.1%.

The US Election

Donald Trump’s ascension from the outside candidate for the Republican nominee to President Elect this month will go down as one of the greatest political upsets in modern history. Trump, too, will not take full control until early next year, but his action over the last few months are already influencing the wider economy. During the course of the election night alone, we saw how currency exchange rates can experience ups and downs based on the market potentials.

Perhaps Trump’s most lasting memory will be his decisions over foreign policy. As well as claim that he will build a wall across the United States and Mexican border, Trump has also said that he would support a 45% tariff on Chinese exports into the country. This has many worried about the possibility of a trade war, that would impact not only the United States but the wider global economy as well. Many countries, including Japan and South Korea, are involved in the deals that bring Chinese goods to the United States.

Have the surprise outcomes of this year caused you to change your business strategy in any way moving forward? Let us know all about your own experiences in the comments section below.

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