U. K. Economy To Shrink By Daniel Marans: Article Analysis

I. Article Summary
Daniel Marans, "Brexit Is Already Causing the U.K. Economy to Shrink," wrote about the after effects of the economy of Britain making decision of leaving the European Union. He does this by providing different eligible sources that show Britain's economy on demand for goods and services. Marans also ends with talking about one of the reason for their actions and the effects if not complying to European Union agreements that are similar to other non-European union countries.
Marans mentions how Britain's economy has been decreasing ever since the country's vote for "Brexit or exit from the European Union," based on a major survey of business executives in the country. The latest data when Britain exit the European Union show
…show more content…
Britain indecisive decision in leaving the European Union has had a huge economic impact. For instance, Britain faced an interest rate cut from .5 percent to .25 percent in August resulting in negative outcomes. One being the weakening of the pound compared to other big currencies causing an increase on cost for vacation in Britain and raising the price of imports to the UK. Not to mention, it is possible for inflation to rise due to import costs rising and leading to increase in cost of food. Furthermore, United Kingdom has been facing trade deficits meaning that UK has imported more than exported goods leading to a shortage. In order for United Kingdom to have a stable or equilibrium market the prices are …show more content…
As can be seen the total trade is around negative 3 billion to 6 billion dollars emphasizing the shortage United Kingdom is having. The reason for such a shortage is for the unbalance of demand of goods and supply of goods. If this was being seen in a chart of the relationship of equilibrium it would look like the image below. IV. Conclusion
In the process of coming up to a decision based on Brexit has concluded to show the decline of United Kingdom’s economy. It has reach to the point where the interest rate has been cut and the pound has lost value. The lost of the value of the pound effect American travelers making the trip to Britain more expensive, but the exporter are benefiting. The supply and demand of Britain has fell below the equilibrium meaning there is a high shortage instead of a balance economy. All the data or statics have proven that Brexit is the cause for Britain to go to a similar path as the Great Recession on April

Related Documents