The situation

Brexit and its effects on fashion

Britain wants to leave the European Union. It’s been labeled Brexit, as Brexit backers argue that the E.U. creates burdensome regulations that have hurt British innovation and competitiveness. On the other side of the equation, this departure could send shock waves across the global economy and threaten more than a trillion dollars in investment and trade with the United States.

Thus, on the frontline of this situation is the United States as they are the single largest investor in Britain as some of Wall Street’s biggest names are donating substantial sums to keep them from leaving.

The pound has dropped at its lowest level since 1985 against the dollar while the euro has fallen 3.3% which is its biggest single day loss since its inception. This is not a simple issue as it will take at least two years for Britain to compete it’s complicated divorce from the EU, raising dozens of questions as London’s role as a global financial capital.

This effects the fashion industry as it contributes an estimated $38billion to the UK economy of 2014. Luca Solca, head of luxury goods at Exane BNP Paribas stated, “The most important consequence of ‘Brexit’ I think is a dent to global GDP prospects and damage to confidence”. She continues with, “More than ever, the industry will have to work on moderating costs and capital expenditure”.

Thomas Jordon Raybell