Business & Investment

How Brexit is already hitting the UK economy

Due to the turmoil at the European border and the turmoil in the supply chain due to new tariffs, the UK economy began to show a negative impact on the economy by leaving the European Single Market and Customs Union earlier this year, some indicators show. I am.

  • Gitagopinato, Chief Economist of the International Monetary Fund, said this week New economic forecastBrexit will shrink the UK economy by “about 1%” this quarter.

  • Performance in 2020 is the only economy downgraded by the IMF, and gross domestic product is estimated to have fallen by 10% last year.

  • According to a survey by data company IHS Markit, UK manufacturers and service providers The most serious confusion “Almost exclusively associated with both Brexit turmoil and a serious lack of international transport” in the supply chain

  • The volume of cargo between the UK and the rest of Europe 38% down In the third week of January compared to last year.

  • Paperwork, rising costs and delayed compliance have had a serious impact on the transportation of goods on the UK-European Union route, but more on trade between the UK and Northern Ireland, which remains in the single market It has a serious impact.

  • The official financial oversight agency, the Budget Responsibility Bureau, announced that Brexit in November Shrink the UK economy Free trade agreements, such as those signed between the two countries just before Christmas, will increase by 4% in the long run.

read: UK tech companies are paying attention to US listings hitting London’s stock market after Brexit

Outlook: Prime Minister Boris Johnson recently identified many of the incidents and trade turmoil caused by the start of Brexit as “dental problems.” But many, from British fishermen to financial experts in the city of London, expect the government to act to mitigate the blow.

The massive economic blow caused by the COVID-19 pandemic may help hide the harmful effects of Brexit on the general public earlier this year. However, it is difficult to understand how governments can mitigate the consequences of being a single market outsider without taking a step back towards the EU and starting further discussions.

read: Why Europe Needs More Fiscal Stimulation

How Brexit is already hitting the UK economy How Brexit is already hitting the UK economy

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