Leah Zitter

Leah Zitter

Brexit: Good for Your Money

RemitCompare | March 2nd, 2017

If you’re a migrant worker or expat who’s moved to Britain, Brexit may benefit your bottom line far more than doomsayers say. Here’s how.

Brexit lowers unemployment

Brexit seems to improve Britain's job opportunities. Records show an unprecedented low of 4.8%. It has only been this low 11 years ago in the pre-dot-com era of the 1980s. Critics say the dip is temporary, but we’ve been eight months into Brexit and the optimistic trend continues. So how does this trend benefit you? If you’ve moved to Britain for work, you may be more likely to find opportunities than in the pre-Brexit days and may also earn double income.

Manufacturing opportunities are increasing

The Purchasing Managers Index (PMI) that shows the economic health of the manufacturing sector shows that Britain's business sector is doing rather well. Everything in the country has dropped to 20% as a result of an inexpensive GBP that dropped from 1.5100 to 1.2000 vs. the USD. At the same time, Her Majesty's Customs page shows that this inexpensive currency has lowered imports and increased exports making the country richer. How does this affect you? You may find almost everything cheaper form violins to drugs to houses to Fords. You earn 20% raise in buying power and make your earnings stretch further.

All economic activities show expansion

Britain is more than manufacture. It is also service and retails-based. A look at the data that analyses U.K. services, U.K. consumer confidence and U.K. retail sales, all of which constitutes the economy, shows that indicators on the last two sectors peak towards the higher end, while the services index is just above average and predicted to increase. Here’s where it helps you: You have the rare chance of saving thousands of dollars on healthcare bills, real estate or higher education.

Inflation heads higher

Over the coming year, Britain will see inflation and subsequent interest rates rise. At the same time, reports predict that Britain will outpace Europe in terms of economic activity. Mathematician and economist, David Taylor speculates that money will flow from Europe to banks in Britain, and from there to finance British companies and startups. So, in a way, the E.U. loses and Britain wins, while you may have the chance of a lifetime to get your startup or project off the ground.

The Euro/British Pound (EUR GBP) heads lower

Right now, the GBP has risen above the Euro. Predictions are that the differential will widen to favor the GBP during coming years. In fact, economists expect the EUR GBP to dunk below the pre-Brexit levels of .7700 before the end of 2017. All of this means a stronger British currency to Euro and more leverage for your dough, if you live in Britain. As an expat or migrant worker who sends home remittance, this means that at recent exchange rates, you send home more for your salary than you did during the past 11 years.

In short, Brexit seems good for your money. For expats or migrant workers who live in the U.K., Brexit brings jobs, gives you a 20% raise in buying power, save tens of thousands of dollars on British property or higher education, and may boost your income by double-digits.

What’s not to enjoy?