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Opinion
Therese Raphael

The Real Reason an EU Exit Would Punish the British Economy

Fickle foreign money could flee if London's bubble bursts.
U.K. real estate is a big draw for foreign investors.

U.K. real estate is a big draw for foreign investors.

Photographer: Luke MacGregor

One of the biggest unanswered questions of Britain's looming referendum is how much capital might flee the nation if it decides to go it alone.

As it stands, foreign investors do better in Britain than British investors abroad, and that investment has been a big driver in the U.K. economy. It also helps explain why there's so much concern about the nation's growing deficit in its current account -- the gap between what Britain pays foreigners and what it receives.