It has been a long night. The EU Referendum results were counted by local authority areas who each declared their own results. The numbers were then passed up to regional centers, who again, declared their results before passing over to the central counting center in Manchester. Despite torrential downpours began hitting the south east of England, the turnout remained high. Due to flooding, some ballot sites were even forced to close or relocate. The disruption was a silver lining to leave voters, who despite the thunderstorm in cosmopolitan London and other pasts of UK were determined to vote leave at Brexit Polls. The final EU Referendum Result has just arrived: Britain quits EU!
Now that it has Brexit poll result finally come down to one decision, what are the practical economic implications? How will Brexit affect you? Industry Leaders looks into what might happen in a year or two after Britain quits EU.
Brits were torn over two options: voting to leave or voting to remain? It was a huge decision with many market implications on Brits. Those who preferred to vote leave were fueled with vitriolic attacks, some going as far as calling racists. Those who voted remain did it for freedom of movement, and overall economic performance.
Let’s get on why Britain vote leave and bid Au Revoir! to the 28-nations European Union. But, before we get to that, let’s first understand why voters backed Brexit: a) EU membership is a bigger problem than it looks, and b) leaving the EU might actually solve actual problems such as mass immigration and financial crisis.
BREXIT POLL RESULT: WHY BRITAIN QUITS EU?
Brits, unlike EU citizens, aren’t happy with the direction the EU is headed. To solve this crisis, the EU is pushing for ‘United States of Europe’ concept, something most Brits don’t want. The concept is more of a political union to bring the 28 nations closer. Many believe, this is the last chance, to exit the European Union. Cosmopolitan youth of UK believes there’s nothing that can stop countries from working together – look at Mexico, Brazil, and Argentina, work it out with the USA.
Mass immigration due to refugees welcomes with open arms by the EU has pushed down wages at the lower end of the pay-scale and put a lot of pressure on public services. In a lot of towns in the UK, British citizens have in fact become a minority. Any economy relying on mass immigration is unsustainable for a long-term.
The political headwinds in the Europe are changing, and the Eurozone unemployment has broken all records leading to a poorly handled migration crisis. The United Kingdom is the first of them any countries in the EU to call for a referendum.
Sure, exit from the EU will cause economic disruption. But Brits want an independent, self-governing and financially strong United Kingdom, the Brexit gives just that.
ECONOMIC IMPACT OF BREXIT & HOW WILL BREXIT AFFECT YOU:
Trade deals in the UK could determine the economic success post-Brexit. The disruption after the EU Referendum could last beyond 2020. Moreover, trade agreements between the EU and 52 other countries, which blanketed over the UK, will have to renegotiate individually.
BREXIT POUND VALUE
Leaving the European Union has already left a dent on pound value. Yesterday, the value of pound reached $1.50 (1 British pound equaled $1.50 US) the highest in weeks. Brexit from EU will lead to global economic uncertainty, and shake financial markets and other currencies.
Banks are going to caution clients against taking large positions in the market where currencies could shake up liquidity. There’s going to be greater turbulence in the coming months.
BREXIT ECONOMIC RECESSION
The IMF has already warned that Brexit would leave an economic recession that wouldn’t wane until 2020. It’s going to increase unemployment, reduce wages, fuel inflation and hit British living standards. The GDP will be a shy 5.5% by 2019.
In order to trade with other countries, Britain will have to enter the market again and renegotiate. These renegotiated trade terms and deals won’t be as favorable as before, therefore, “significantly raise trade barriers."