Pain from Brexit on Britain, EU may be exaggerated: DBS chief

Singapore

TAKING a contrarian view, DBS chief Piyush Gupta on Friday argued that the stunning "Brexit" result may not hurt Britain as dramatically as is perceived, and that a European Union (EU) that is less centrally managed might create a more sustainable region.

"I think the true structural impact from Brexit on Britain is exaggerated," he told reporters on the sidelines of DBS's first institutional investors symposium.

He said that in the short term, the UK could see a surprise bounce because of the weaker sterling, and noted that the trade flows between the EU and Britain should continue despite the break-up - and one that has also torn UK apart with the tight 52:48 vote. "Comparative advantage, which determines macroeconomics, will not change," said Mr Gup…