Brexit's Impact On The Economy

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Brexit’s Impact on the Economy

Overview
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 take a look at 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 has proved them wrong with their economy growing. Even though their economy is still growing, experts still project their economy will fall. In the long run, Britain’s decision could pave the way for other countries to leave the European Union. This could lead to the collapse of the Euro—which would send the economy into a downward spiral.

Immediate Impacts
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The Euro could collapse from this, and that would make 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. Around 63% of Britain’s total exports go to countries in Europe. While they were 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

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