Australia's peak business body says uncertainty and market volatility from the shock Brexit vote is likely to continue for months.
Advisory firm KPMG estimates the Australian economy will shrink by at least one per cent as the UK transitions out of the EU.
However, AMP Capital chief economist Shane Oliver said Brexit was unlikely to have a major economic impact on Australia.
"Given that only 2.7 per cent of Australian exports go to the UK and the `Leave' victory is unlikely to plunge Europe into an immediate recession, the main impact on Australia will be on financial markets," Dr Oliver said.
Confidence is still sitting near multi-year highs as Australians take heart in the domestic economy rather than worrying about the Brexit. The ANZ-Roy Morgan consumer confidence index fell 1.7 per cent to a level of 116.8 last week, but it remains above the monthly average since 1990 of 112.8.
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