Corona and Brexit

Corona and Brexit 

Brexit Consequences for the U.K., the EU, and the United States 

Consequences of Brexit for the U.K. 

The U.K. has already suffered from Brexit. The economy has slowed, and many businesses have moved their headquarters to the EU. Here are some of the impacts on growth, trade, and jobs. There would also be consequences specific to Ireland, London, and Scotland. 

Growth 

Brexit's biggest disadvantage is its damage to the U.K.'s economic growth. Most of this has been due to the uncertainty surrounding the final outcome. 

Uncertainty over Brexit slowed the U.K.'s growth from 2.4% in 2015 to 1.5% in 2018.9 The U.K. government estimated that Brexit would lower the U.K.’s growth by 6.7% over 15 years. That’s if there is a trade agreement but restrictions on immigration.10 

The British pound fell from $1.48 on the day of the referendum to $1.36 the next day. That helps exports but increases the prices of imports. The pound may strengthen once a deal is approved, depending on the trade terms.11 

Trade 

Brexit would eliminate Britain's tariff-free trade status with the other EU members. Tariffs would raise the cost of exports. That would hurt U.K. exporters as their goods become more expensive in Europe. Some of that pain would be offset by a weaker pound.

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https://www.thebalance.com/brexit-consequences-4062999