About few days ago, the UK ceased to be a member of the European Union , what everyone is commonly referring to as British exit or Brexit. The EU has been a vital pillar for the economic growth of the UK, allowing free trade and free movement between 28 countries in Europe. Many people are still anxious about the move and how it will affect the UK economy, with many terming it as «a disaster» and «a decision that the nation will regret in the future».
The UK economy stagnates at the start of 2020
After surveying 6,500 firms across the UK late last year, there was an overall downward trend in the service sector which contributes a significant 80% to the economy, and the industrial sector. The BCC predicts that the economy will grow by 1% in2020, a drop from 2019’s 1. As much as there were other factors such as poor discredited economic policies that contributed to the sluggish economy, the Brexit negotiations are to blame as well.
Businesses banking on new deal
In the meantime, there is expected to be new trade agreement between the EU and the UK as well as trade deal talks between the EU and countries all over the world. It is the finalization of these talks that businesses men are eagerly waiting for so that they can know their future when it comes to trading with other countries. Depending on how favorable the trade deals will be, the UK economy is likely to recover much faster after the transition period. With the Brexit, the UK can finally have formal trade negotiations and be well on its way to higher economic prosperity.