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Essay / Effects of Brexit - 1281
If UK consumers and businesses reduce their imports from abroad due to falling purchasing power, this will cause other economies to slow down. The Economist Group estimates that for every point of decline in growth in the UK economy, other European countries will see a decline of half to a third of a point, leading to lower profits for European companies. This is why stock markets across Europe fell immediately after the vote. And as the UK is one of the largest importers from Asian countries including China and Japan, Brexit has also caused a strong negative reaction in Asian stock markets. (Nikiforov)It goes without saying that the United Kingdom's decision to leave the European Union has played a role both domestically and internationally for the economy. The initial reaction to the post-Brexit economy has been negative, although it is gaining ground over time. As the United Kingdom's identity grows after leaving the European Union, economists can only predict which direction its economy will take and how this will affect the global market as a global market.