Brexit impact and consequences

1. BRitain-EXIT

2. INTRODUCTION
• The United Kingdom intends to withdraw from
the European Union, a process commonly
known as Brexit, as a result of a June 2016
referendum in which 52% voted to leave the
European Union.
• The separation process is complex, and will
cause political and economic change for the
United Kingdom and other countries.

3. IMPACT AND CONSEQUENCES
• The concept of “Globalization” came under
universal doubt.
• United Kingdom economy is shrinking at a
quarterly rate of 0.4 %.
• The latest inflation results indicate that there
is a 0.5% rise in the consumer prices index.
• There has not been a penny of new funding
announced for the National Health Service
after the referendum vote.

4. IMPACT AND CONSEQUENCES
• Bank of England has taken a number of steps to
boost the UK economy. It has cut interest rates
from 0.5% to 0.25%.
• Pound witnessed a fall on 15% against Dollar and
12 % against Euro
• Total UK unemployment dropped between April
and June in the run-up to the vote, with the
jobless total down by 52,000 to 1.64 million -
leaving the unemployment rate at 4.9%.

5. IMPACT AND CONSEQUENCES
• 63% of Britain’s goods exports are linked to
European Union membership. Brexit means that
in the short term, British exporters will face tariffs
and additional exporter costs.
• Britain will have difficulty in attracting foreign
investments.
• Now that Britain will soon be gone, the EU is no
longer an “exclusive club you can enter but not
exit” It is not unreasonable to think that other
countries will also consider leaving.

6. CONCLUSION
• Britain needs to market the positives and limit
the scope of the negatives
• It needs to reduce the fears about investing in
their country.
• It needs to create a plan to show the world
that it will continue close ties and financial
relationships with the US and the Eurozone.