Crisis or speed bump? What UK vote means for economy sectors
FRANKFURT, Germany (AP) — Britain's vote to leave the European Union adds a heavy dose of uncertainty to a world economy that is still struggling to reach full speed years after the global financial crisis.
The Chinese economy is slowing, the U.S. recovery has hit a slower patch, major emerging economies like Brazil are in recession, and Europe and Japan are stagnating.
[...] the labor participation rate hasn't recovered since the recession of 2008-9, indicating that many workers have not benefited from the stronger U.S. recovery.
"Uncertainty certainly impedes investment decisions, and with few signs of any pickup in the global economy we're probably going to see a slower rebound in capital spending," said Sara Johnson, senior research director of global economics with IHS Global Insight.
The market plunges after the vote are one reason for the world's central banks to keep their rock-bottom interest rates in place.
"Brexit could be a game changer for central bank thinking," Megan Greene, chief economist at Manulife Asset Management, wrote in a research note.
Greene predicted that the Bank of England could have to print money to finance government spending, tax cuts or both and that the Bank of Japan could follow.
American travelers heading to Britain and the rest of Europe are going to find less-expensive meals, hotels, souvenirs and museum admissions because the U.S. dollar will go further.
Overall, said Steve Barr at PwC, any prolonged declines in the stock market could make shoppers wary about spending.
"If the U.K. takes a tougher stance on immigration, for businesses this will be a disaster as the EU will retaliate," said Christian Stadler, professor of strategic management at the Warwick Business School in Coventry, Britain.
Analysts at Oxford Economics think the global market reaction and fears of an EU breakup are exaggerated.
Donald Trump, the likely Republican nominee for U.S. president, has