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Britain's EU exit sends global markets into tizzy

The global economy is staring at months of slower growth as Britain's shocking decision to get out of the European Union affected global economies, raising serious questions over the outlook for corporate and consumer spending.

Britain's EU exit sends global markets into tizzy

It is expected that the damage would be concentrated on the other side of the Atlantic Ocean, experts said its affect will be felt across the world and into the United States. The domino effect was on display Friday as the Dow Jones Industrial Average lost 600 points. The drop was more significant in Europe and Asia, where major stock indexes sank 7 percent or more.

The exit of Britain has sparked risk that the global economy would not just stall but slip into recession. Experts maintain that Britain's exit from the EU - popularly known as Brexit - could prove very harmful for the world economy.

"We think the time has come to consider that a financial market crash today may push a world economy teetering on the verge of a contraction over the edge," said Carl Weinberg, chief economist at High Frequency Economics.

The fall in global market sends a clear message that there is a massive uncertainty surrounding the logistics of a separation. It is expected that the Brexit would make businesses and households nervous about spending and could complicate trade between British companies and their partners in Europe and elsewhere. The volatility could stress European banks, and weak global economy could prove very testy for struggling countries such as Italy and Greece.

Britain is going to spend the next two years negotiating the terms of its departure from the 28-member alliance. The country need to elect new leadership, strike new trade deals and come up with several new regulations about issues such as immigration and investment.