Comprehensive Report: Brexit's Negative Impact on the UK Economy

This report examines the negative economic impacts of Brexit on the UK, analyzing the decline in the British economy after the UK's withdrawal from the European Union. The report details how Brexit has caused economic downturns in sectors such as manufacturing, agriculture, and construction, while only the service sector showed growth. It critiques the viewpoint of Kevin Granville and provides a summary of the economic impact, including the falling value of the pound, and the resulting crises across various industries. The report also addresses the global economic context, including the impact on China and Germany, and concludes that Brexit has negatively affected the UK economy, leading to an overall decline in growth and performance across financial, technological, and agricultural sectors. The report references key sources like Colantone and Stanig (2018) and Schoenmaker (2017) to support its analysis.

BREXIT

Table of Contents
INTRODUCTION...........................................................................................................................1
Section A..........................................................................................................................................1
Summary.....................................................................................................................................1
Section B..........................................................................................................................................1
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4
Books and Journals.....................................................................................................................4
Online..........................................................................................................................................4

INTRODUCTION
Brexit is withdrawal of UK from The European Union. Brexit is the word used for defining the
exit of the UK from the European Union. As on the 23 June 2016 with the 51.9 percent of
member was supported to leave the EU, which has invoked Article 50 of treaty. The process
which was started in the year 2016 was ended in the year 2019 and the UK was officially exit
from the EU(Colantone and Stanig, 2018).
Section A
Summary
The article was taken to study about the global issue that was occurred due to Brexit that
is UK leaving European Union and how the British economy shrinks. The article describe how
Brexit caused economic downfall in various sectors such as Manufacturing, agriculture and
construction sectors. According to the report only service sector has showed a upward movement
during Brexit. The view point of the writer, Kevin Granville has been critically analysed and the
interpretation has been described in the report. Further in the report I have summarized my
opinion that whether I agree with the writer's point of view or not.
Section B
According to the writer's point of view the British economy faced a downfall in the 2nd
quarter over Brexit and lead to slowing global growth. Office of National Statistics analysed the
effects of Brexit and evaluated that the economy fell by 0.2 percent during the first three months
duration that ended in June. Brexit caused a drop in the economic growth of Britain that it was
enjoying since the last 25 quarters. The analysts has expected growth to be constant for the first
quarter. I agree with the writer's point of view that it has affected the British economy as I have
studied same in the article Schoenmaker (2017). The pound which was already falling for
months started falling with a heavy rate that was below $1.21. The economy faced crises across
the Britain's manufacturing, construction and agriculture industries. There was only one sector
that is service sector that showed a slight growth. The figures show that how British businesses
have been cutted off as the Britain withdraw from the European Union. In the early year, when
Brexit was about to come in March 29, the businesses thought that they are separating so the
prices will go down and people will purchase more, so in order to fulfil the demands the
companies produce more and so the GDP increased for the first quarter by 0.5 percent.
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Source-British Economy Shrinks, a Sign of Economic Uncertainty, 2019
The deadline of Brexit was force to October, and thus the businesses have to make small
purchases in the second quarter as the stock was slightly used. The economic growth paused. The
global downfall was weighing on the UK economy. The IMF(International Monetary Fund)
according to reports has faced slow growth across world as a result of a war between United
States and China. Germany's industrial production of June fell by 1.5 percent, that was not
expected and that raised the fear of recession in Europe that is the largest economy. Brexit
impact on China was positive as the economic output of China grew with an annual rate of 1.8
percent in the 2nd quarter, reported by the government (British Economy Shrinks, a Sign of
Economic Uncertainty, 2019). The industrial leaders have analysed that their can be an economic
disruption if Britain left the European Union that to without the agreement on the basis of future
relationship that is a “no-deal Brexit”. Now the situation was getting alarming as the deadline
was coming closer. The British pound was sliding in the terms of value as compared to the
American dollar for the several months. The weaker value of pound is making British exports
inexpensive, and while rising the costs of imported items and making them more expensive.
Because UK imports are comparatively more than it's exports, so that makes the net effect
negative. Since the last quarter of 2012, this was the first downfall that economy of UK saw
amounting to 0.2 % as per statistical data.
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Illustration 1: GDP Chart of Britain

CONCLUSION
From the above report it can be concluded that Brexit has a negative impact on the UK
economy. The economy saw a downfall in the second quarter and a fall of 0.2 percent in overall
growth. This separation of Britain from European Union has only led to decline in the
performance of all the sectors whether financial, technological or agricultural.
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REFERENCES
Books and Journals
Colantone, I. and Stanig, P., 2018. Global competition and Brexit. American political science
review. 112(2). pp.201-218.
Schoenmaker, D., 2017. The UK financial sector and EU Integration after Brexit: The issue of
passporting. In The Economics of UK-EU Relations (pp. 119-138). Palgrave Macmillan, Cham.
Online
British Economy Shrinks, a Sign of Economic Uncertainty. 2019. [ONLINE] Available through
<https://www.nytimes.com/2019/08/09/business/british-economy-second-quarter-shrinks.html>
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