Who Are The Losers And Beneficiaries Of Brexit?
The departure of the United Kingdom from the EU had an immediate effect on the economy of Europe and the world. Immediately after exiting the EU, stock markets across Europe suffered a 12% fall, followed by a significant devaluation of the UK’s Sterling Pound on economia.estadao.com.br. The pound reached the lowest level of value since 1985, and worse lasting on the implications on the global economy are foreseen to happen in the future.
According to principal executive Flavio Maluf, the first economic consequences will be heard by the UK. Figures released by the EU in 2014 showed that UK contributed more to the EU that it gained. Although, this brought inflation in the country, exiting the EU shall never be the solution. A significant drop in investments is expected to be experienced as there will be no more free movement across the borders.
Moreover, the UK will be disadvantaged in foreign trade across Europe. The custom unions that eliminated tariffs and offered quota will no longer be accessible to the Britons at https://br.linkedin.com/in/flavio-maluf-172147b3. Exiting the bloc means that EU will set new rates for the nation, which will adversely affect the UK’s foreign trade.
On the other side, the EU bloc will not be spared by the exit. The UK had established trade links with France and Germany. Exiting from the bloc means that these nations will as well struggle economically. Immediately after existing, France showed signs of adverse effects meaning that only Germany is left with muscles to sustain the entire bloc.
Brazil stands an excellent chance to boost its economy. Exiting the EU means that the UK can sign enter into bilateral agreements with Brazil. This becomes possible because EU discusses bilateral agreements on segs.com.br on behalf of each member country. The benefits may, however, be very limited since the UK accounts for less than 2%.
About Flavio Maluf
Flavio Maluf is an experienced entrepreneur and mechanical engineer with excellent skills and knowledge in business management. He is the president of Eucatex and GrandFood. Maluf is a graduate of the FAAP University in Sao Paulo. Maluf devotes some of his time to help young entrepreneurs develop their career.