Brexit is Least of Europe's Concerns say Stock Pickers

Brexit could shave 0.3% off European economic growth. But bigger potential pitfalls include upcoming elections, interest rates and Italy's bank balance

Holly Black 18 January, 2019 | 7:26AM

Barcelona Spain investing in Europe Brexit

Brexit might be top of the political agenda in the UK, but across the Channel, Europe has been focused on homegrown concerns. But David Zahn, head of European fixed income at Franklin Templeton, says while the UK is likely to bear the brunt of the impact of Brexit, it is also likely to affect the EU.

Zahn estimates that growth in Europe could be hit by up to 0.3% in the event of a hard Brexit. He adds: “That may not seem much, but when the EU is only growing at 1.5% to 2% it represents a more sizeable chunk.”

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

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