With a 52% to 48% result, the UK has voted to leave the European Union (EU) after 43 years, as suggested by a BBC forecast.
Over 46 million people were entitled to vote, and the entire time the votes were being counted, they swung between the voters wanting to leave the EU, and those wanting to remain. The referendum turnout was higher than the general election held last year.
While London and Scotland voted to remain within the EU, voters in Wales and the English shires have backed the vote to leave in strong numbers. Following the discussion of the result of the Brexit, the pound fell to its lowest level against the dollar since 1985.
The Leave campaign has argued that membership in the EU costs the UK billions of pounds that could be spent in the UK. Another key issue was the desire to better control Britain’s borders.
What does this mean for Australia?
This result has a massive impact on the global economy, as well as for Britain’s relations with countries globally, including Australia. However, if predictions are to be believed, Australia may actually benefit from the Brexit. It would be easier for Australians to live and work in the UK if Britain adopts the Australian points-based system of immigration for European citizens. In currency, The Australian dollar could rise up to 8.3 per cent against the British Pound.
However, a fall in the pound will have negative implications for Australians who have pensions and other assets in the UK. A fall in the pound will also result in a shaky global economy would impact Australia’s trade, with exports a key driver of recent GDP growth, so this could have a severe consequences for employment and economic growth.