EFFECTS OF BREXIT ON THE U.K ECONOMY 2
Effects of Brexit on the U.K Economy
Introduction
Brexit is a move which officially the UK out from the European Union. Before the June
2016 referendum, many economists gave both promising and gloomy predictions of which some
have happened whereas, others haven’t. This paper seeks to present the effects that Brexit has
had on the Britain economy so far.
Negative effects
In November 2017, the Bank of England increased the interest rates for the very first time
since Gordon Brown-Administration. In fact, according to the Bank’s Governor Mark Carney,
the interest may increase even further by 2020. Additionally, Carney warned that Brexit vote had
put Britain among the worst performing G7 members (Welfens, 2017). In November 2017, the
Autumn Budget indicated that the UK needed £25 billion extra to restore its economy. The
Budget also showed that Britons were facing the biggest financial problems since the 1950s.
Furthermore, the 2017 economic growth rate was 1.5% down from 2% target.
The Bank of England also predicted a fall in the level of business investment to approximately
25% by 2019, thus damaging its future productivity growth. Moreover, statistics indicate that
Britain has lost more than 10500 financial jobs since Brexit. The situation may worsen,
considering that the UK’s big financial firms like Citigroup and Morgan Stanley have already
declared their intentions to vacate Britain.
Technological-wise, Brexit has jeopardized London’s status as the European tech capital since
many tech companies have vowed to exit London. Possibly, the UK-based companies won’t be
