Just a few months ago, news broke that Britain had decided to leave the European Union. Britain’s decision is now known as “Brexit”. There were many theories as to what was going to happen to the economy from Britain leaving the European Union. Now that a few months have passed, we can review the overall outcome of the situation. We can also make guesses as to what will happen in the future. Britain leaving the European Union has had many effects on the European economy as well as the global economy. Many experts predicted that the economy would take a hit, and that the growth of the economy would slow down. After a few months have passed, Britain had proved them wrong with their economy going on the rise. Even with their economic growth, experts still project that their economy will fall. In the long run, Britain’s decision could pave the way for other countries to leave the European Union. Under those circumstances, this could lead to the collapse of the Euro, which would send the economy into a downward spiral.
If another country like France were to leave the Union, it would be arduous for the European economy to stay strong. The Euro could collapse from this, and that would cause many countries’ economies suffer (Gillespie). The European Union is one of the world’s largest trade blocks, and if they were to fall apart, all of the trade deals would have to be reconstructed for each country. Reconstructing trade agreements is a lengthy process that would take years to get ratified. While Britain was in the European Union, there was a free trade agreement in place that allowed countries to not have to pay tariffs. Now, they will have to pay costs to ship their goods (Boulanger). Around 63% of Britain’s ...
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...ill slowly decrease. This is due to the pound decreasing in value, which would drive up inflation. When there is inflation, consumers are less likely to spend money and invest. There is one certain company that is investing into Britain, it would be Nissan. Nissan believes in the British economy, with their decision to continue the production of 500,000 vehicles a year in the country. (Douglas)
In conclusion, we learned that many companies were afraid to invest into Britain’s economy due to sheer uncertainty. For that reason, nobody can be 100% positive when it comes to predicting the future. The immediate impacts have not affected Britain’s economy greatly, but more so the global economy. In the next few years, it will be interesting to see where Britain’s economy is at, to see how the country is doing overall and to see if the exit was worth it.
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