This article talks about how the UK is now the closest it has been to a recession since the financial crisis. It is a no shocker that this is a reaction to Brexit but what's interesting and rather scary is how the entire global economy is affected. The service sector, which consists 80% of the economy has seen a downfall, not surprisingly, the US service sector too has seen a downfall. The German private sector has also seen it's first decline in six years. Trade tensions between US and China have affected the global economy with a decrease in manufacturing output and export volumes. The FTSE, the London stock exchange has seen a significant plunge and companies have been shedding jobs at the fastest rate since 2010. Investor confidence is low as the future remains uncertain. All of this news is worrisome and strong measures need to be put in place to avoid a second major global financial crisis.
https://www.theguardian.com/business/2019/oct/03/uk-edges-towards-recession-as-service-sector-sinks
Brexit will definitely cause a plethora of problems both on a global and national scale. What I am wondering though, is how the rest of the European Union will react. Will the EU's economy be in shambles? What affect will that have on the United States?
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