Economic Impact of Brexit on UK

BUSINESS ECONOMICS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Economic issues can be defined a problem in economy because of which money, trade,
industries of a country are impacted (Gudgin and et. al., 2018). It is extremely important for a
country to focus upon identifying and resolving economic issues that can reduce overall growth
rate of a country. there are various kinds of economic issues that can impact a country in both
positive and negative. Topical economic issue chosen for this essay is Economic impact of
Brexit on United Kingdom.
MAIN BODY
Overview of ways in which Brexit event has affect overall economy of UK
Brexit is a short for of Britain exit from European Union. In January 31, 2020 UK left
European Union. Event of Brexit is one of the major and most important economic issue that has
impacted UK drastically in many different ways both positively and negatively. one of the major
and most important impact of Brexit was that it reduced overall per capital income of UK. Due to
this economic issue UK has suffered loss in per capita GDP. Its negative impact on
unemployment was quite less but it has directly increased inflation rate of country (Tetlow and
Stojanovic, 2018). There are many other kinds of economic impacts of Brexit that has impacted
UK but majorly it has impacted trade (including both import and export), FDI (Foreign direct
investment), and productivity that focuses upon GDP per head. It has been observed that being a
member of EU provided more than 73 percent of gain in terms of trade. Leaving EU directly
impacted in reduction of trade both in terms of import and export. Due to this loss of trade
productivity of directly impacted. It has been analysed that if past 15 years overall GDP has lost
by approximately 7 percent. If FDI is measured in terms of money then exit from EU has result
in loss of 22 percent of FDI. If immediate impact of Brexit on economy of Uk is seen then its
inflation rate has increased, national income of UK has decreased by approximately 1.5 percent.
Due to Brexit overall performance of various organizations that operated globally and had
offices in all over Europe. their business has also been impacted due to this Brexit economic
issue. Most of the companies again have to focused upon bringing changes within their business
strategies, plan, update their policies etc. as per the current scenario. As a result of Brexit many
organizations had shifted assets, offices, or businesses operations out of Britain in order to retail
their operations in other countries of Europe because of which financial condition of UK had got
disturbed because as per the statistics more than US $ 1 trillion were transferred out of UK and
1