Although we are far from moving past the Covid Pandemic, we have come a long way in the last two years. Just before the onset of the pandemic in 2020, the UK had made the unprecedented decision to leave the European Union. Now, the effects from "Brexit" are starting to differentiate themselves from those of the pandemic. One of the biggest impacts of the pandemic has been the the tight supply chains that have delayed the transportation of goods for weeks. Unfortunately for the UK, trade will only become more limited as, in July, Britain plans to finish implementing the rest of the trade deal that they have with Australia. By September 2021, British trade had dropped about 11.2% or 8.5 billion pounds than what it would have been in the E.U. But, that's not where the economic change ends for the UK, in 2025 they will have introduced extra 29 billion pounds of taxes. Economists also predict that by this time, Brexit will have cost more that 30 billion pounds in public finances. The optimism surrounding Brexit and the opportunities it might bring is quickly fading as GDP is predicted to drop 4-7% once all of the trade deals are in place. However all hope is not lost for the economic future of the UK. With emerging markets such as AI and robotics showing promise, Britain has the opportunity to capitalize here and prepare to be a frontrunner in a new market with tons of potential.
Article:
https://www.theguardian.com/commentisfree/2022/jan/31/covid-easy-scapegoat-economic-disruption-brexit-biting
Trade becomes more difficult in the UK because it is only in July that the British government will let the remainder of the checks under the terms of its trade deal with the European Union. Relating back to Brexit, it is believed that it had more of a negative impact than positive.
ReplyDeleteTrade has been greatly affected by the pandemic for all places, as there have been many supply chain issues and other delays. However, for the UK, there will be even more changes and potential problems with trade because of Brexit. Once they finalize the trade deal and start to follow it, the real affects will be seen.
ReplyDelete