The referendum, on 23 June 2016, where the UK decided to leave EU was is called as Brexit. It is obvious that it won’t be priceless for the UK to leave the European Union. According to the plan, the UK would cut off all ties with the EU immediately without any transition period and without guaranteeing on citizen’s rights of residence. The plan is big, so would be its impacts on the economy. Mentioned below are some significant economic impacts the UK has to face:
- There would be a significant disruption to businesses in short-term due to the lengthy tailbacks of Lorries at the channel ports as drivers face new checks on cargos.
- Shortage of fresh food production is another great challenge faced by the UK and NHS, in order to cope up with the interruptions from UK countries, is stockpiling medicines.
- Multinational companies in the UK are also giving alarming signals about the long impact of Brexit on the British economy.
- The United Kingdom would lose these advantages of state-of-art technologies granted by the EU to its members in research and development, environmental protection, and energy
- A hard Brexit would raise the cost of exportswithout a trade agreement as it would eliminate Britain’s tariff-free trade status with the other EU members.
- After the referendum, the British pound lowered to 14 per cent which helps exports but increases the prices of imports. Tariffs will increase and the prices of imports will rise.
Brexit will not only impact the economy of the UK but other aspects of society will be influenced by it.