How will Brexit affect the economy? Many of us seek an answer to this question. With just over eight weeks to go until it starts, we want a clear idea of what will happen – and rightly so!
Luckily, we may be able to determine this. Let’s examine the four key impacts that it has already had on the economy.
In doing this, we can develop a stronger sense of what might happen once we’ve departed from the EU.
Pound Value Fluctuation
At the beginning of last year, sterling was one of the highest-performing currencies. However, it has faced turbulence since. And it’s widely thought that Brexit uncertainty may be one of the causes.
A report from the Office for National Statistics (ONS) revealed that there was no GDP growth in September 2018. Of course, other economic factors – such as inflation – can influence the value of any currency.
But experts predict that the unclear Brexit deal has been a primary influence – and that it could lead to further fluctuations.
If a positive withdrawal agreement is achieved, perhaps it will help to steady and secure sterling’s growth.
A Decline in Export Sales
A major survey conducted last year showed that Brexit has directly caused huge losses in both business and investment for UK manufacturers.
Those that that took part export industrial items from Britain. Collectively, they bring in an average of £52bn a year for the economy.
Yet these results demonstrate that many agencies have already suffered a decline in export sales, some by up to 30%.
So, brands in this field have already had to deal with the economic impact of Brexit.
Business Withdrawal Warnings
The European Single Market works to ensure the free movement of goods, capital, services, and labour. The current withdrawal deal proposes that the UK adheres to single market regulations.
But if access to the trade bloc is not guaranteed, many UK companies have vowed to transfer their operations to another country. Others are seeking out financial security from specialists like Liberis.
Before it’s even begun, Brexit has influenced long-term plans for businesses across the country.
A Fear Over Job Shortages
A survey released by Reuters in 2017 underlined that after Brexit, around 10,000 British finance jobs may be relocated to an EU state. Since then, the number of companies that plan to do this has risen.
If they decide to go through with this, it could result in a reduced average income, which in turn could negatively impact the UK economy.
In the meantime, how Britain prepares for this potential blow for the job market may indicate whether it can heal from this economic effect.
Brexit’s outcome remains a key question for people across the country. Whoever you are, it will most likely be a historical event.
And so, it could affect you, your money, and your life. By learning how it has already affected the economy, you can pinpoint what you need to do to prepare for it fully.