Given the size and the relative strength of the British financial service industry, the decision to pull out of the Single Market may well have more severe consequences on financial services rather than manufacturing. Brexit will create serious non-tariff trade barriers, dampening foreign trade in financial services and the local production of financial services in the UK.
In the short-term, continuity of existing cross border contracts requires bilateral transitional agreements between the European Commission, individual member countries of the EU 27 and the UK. In the medium- to long-term, the international nature of financial markets in the UK suggests resilience as a global financial centre but business related to the EU 27 is likely to migrate due to regulatory demands by the European supervisory authorities and the European Central Bank.
Free download version of "Schwerpunkt Außenwirtschaft 2018/2019":
https://news.wko.at/news/oesterreich/Schwerpunkt--Aussenwirtschaft-2018-2019.pdf
