Brexit slashes UK household wealth by $1.5 trillion

It looks like the British will be leaving the European Union with much lighter wallets, CNN reported.

United Kingdom household wealth has plummeted by a combined $1.5 trillion as a “direct result” of the vote to leave the EU, according to a new report on global wealth produced by Credit Suisse.

The dramatic plunge in wealth was driven by a decline in the value of the pound, which has lost 15% of its value following the Brexit vote.

The loss of $1.5 trillion over the past 12 months translates into a 10 per cent reduction in household wealth, according to Credit Suisse. Household wealth includes financial investments and real assets like housing. Debts are subtracted.

Only Mexico, Egypt, Russia, Ukraine and Argentina suffered larger percentage drops in household wealth than the U.K. Meanwhile, households in Turkey and Colombia fared better than those in the U.K.

Britain is expected to trigger EU exit negotiations early next year. The government’s strategy for the talks is not yet clear, but it’s unlikely that Britain will be able to maintain access to Europe’s single trading bloc.

“The [U.K.] outlook is very uncertain, both for the economy and household wealth,” Credit Suisse said.