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Brexit and the Year to Come
Written by BCCJ
April 2, 2018
Community and Business
The Economist Intelligence Unit has come out with their White Paper report “A year to go: how Brexit will affect the UK economy”. The report covers the bases of how Brexit is expected to affect the job industry, regulation processes, and sectors of the economy. There is still a year to go until Brexit is put in the works and a 21 month transitionary phase to make Brexit sustainable. A deal between the EU and Britain is crucial to the sectors of the British economy, including healthcare and life sciences, automotive industries, financial services, consumer goods and retailing, and telecoms and energy.
The report looks at the possibilities of a deal-or-no-deal trade agreement, much like the FTA, and how this will work in the long-term for the British economy. It highlights that if the “UK leaves the EU without a trade deal we estimate that by 2022 the UK’s nominal GDP will be 2.7% lower”. London will remain a financial hub and global powerhouse if there is a hard Brexit option, meaning a trade deal, but many sectors will suffer without an agreement negotiated between the EU and UK. The energy sector will face 2.9% lower consumption rates by 2022, healthcare and life sciences may suffer from a block to access integral medicines shortened by regulatory agreements or possibly vehicle sales will lower to 13.1% by 2022.
Despite these looming possibilities shadowing over the British economy, it has remained resilient in the face of the exit vote and with a positive outlook for long-term sustainability. With the right measures taken and proper steps towards forging a bond between Britain and the European Union, the British economy will keep calm and carry on.
Download the full report, click HERE
Source: The Economist Intelligence Unit – A year to go: how Brexit will affect UK industry