Economics professor breaks down local impact of UK's vote to leave EU

VIDEO: Economics professor breaks down local impact of UK's vote to leave EU

CHARLESTON, SC (WCSC) - Friday's stock exchange market closed at a record low after voters in the United Kingdom decided to pull out of the European Union.

Nearly 52 percent of people in the United Kingdom voted to leave the European Union, while 48 percent of voters wanted to stay. This move has become known as the British exit or Brexit.

Professor of Economics at the College of Charleston, Frank Hefner, says there is a lot of uncertainty that comes with this split.

"This is pretty much like a married couple that files for divorce with no prenup, nobody knows how they are going to react to each other," Professor Hefner said.

On Thursday the global stock market went up, but with the unexpected split on Friday it went down.

"So what do they do, they panic, why? Actually because nobody knows," Hefner said. "That's the biggest issue nobody knows what this is going to do there's no road map here."

Professor Hefner has a prediction for what this could mean for people in the United States and the Lowcountry.

"In the near term, it would be hard for me to imagine a big change in industrial output, tourism, construction and certainly in the Lowcountry area or South Carolina," Hefner said. "I don't see it being much of a negative impact, except for everyone looking at their retirement plan's portfolio are pretty sad about that."

Experts advise that you don't make changes to your 401k because things could change.

The United Kingdom has one of the word's largest economies. Those in favor of leaving the European Union look for more control over immigration and trade.

"It could take two years before this whole separation is resolved, or it could happen very quickly," Hefner said.

People in the Lowcountry have mixed reactions to the exit. In those responses,some people say they're worried about the impact on trade while others were in favor of the split. In addition, some people have no concerns at all.

For those who are planning a trip to Britain or Europe this summer, the exchange rate will be in your favor, at least for now. The British pound dropped to lower levels so American dollars will be worth more.

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