THE IMPACT OF BREXIT ON UK ECONOMY




Selin ATAY-TDO-Britain's departure from the European Union (EU) could cost the country's economy £ 70 billion.

A written statement on the matter was made by the National Institute for Economic and Social Research (NIESR), headquartered in London.The statement said the British Economy’s Gross Domestic Product (GDP) could fall by about 3.5 per cent in 2029 if Britain leaves the EU on current terms, and output could cost the British economy £ 70 billion.

By revealing the the point that slowing global demand has increased local economic uncertainty, "The UK's economic outlook has been overshadowed by remarkable economic and political uncertainties. The economic outlook will depend critically on the trade relations that will be established after Britain leaves the EU." the statement said.

The statement also shared the forecast that the UK could grow 1.5 per cent by the end of 2019 and 2020.

Besides that, in terms of the implications of Brexit on British trade, currently, the UK has a trade surplus of £19.8 billion with the EU. 44% of all UK exports and 53% of all UK imports are with the EU. Seven of the top ten trading partners of the UK are EU member states. 

The UK had voted for Brexit in the EU referendum in 2016, with 52 per cent against 48 per cent. Yesterday the House of Commons, the lower wing of the British parliament, voted for an early general election on December 12, while the EU gave its approval to delay Brexit until January 31, at the UK's request.