The Impact Of Effect On Macroeconomic On The Uk

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The Brexit impact on Macroeconomic in the Uk

Student Number : 0010896606
Group : DW
Date : 13 March
This report will explain the meaning of Brexit and introduce the influence of Brexit on macroeconomic in Britain. The definition of Brexit is that the Unite Kingdom (UK) will exit from European Union (EU), which raising concern around the world. Brexit has drawn greater worldwide attention, then the increasing number of questions which about the damaging of British macroeconomic has been referred. According to “Brexit means Brexit”, which said by the prime minister of UK. The government of Britain is determined to deliver an exit from the EU. Moreover we can not ignore that the UK has already been a semi-detached
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At the same time, Brexit means that the UK might exit the EU Free Trade Area (FTA),which means that most agreements, regulations and legal basis, the British economy relying on their to develop, will be broken and economic volatility will occur. Accounting to the estimation of WTO (World Trade Organization), these potential failure agreements occupy about 80% of UK’s trade around the world. For example, the UK need to try its best to get access to European single market, need to negotiate with other 60 countries and regions for the EU trade agreement etc.. In addition, if Brexit succeed, the right of Britain in the EU trade policy will be reduced, for example, the UK is difficult to take part in the negotiations about Transatlantic Trade and Investment Partnership (TTIP) directly.
As from different industries, the strongest influence will happen in financial industry. London is an international financial centre, because of the Brexit, its status around the world will decline gradually. Currently, the UK accounts for more than 40% of global foreign exchange transactions, and lots of European financial institutions set up their headquarters in London, therefore most European countries’ derivative trading and risk hedging activities are carried out in the UK. Britain occupies around 80% of the EU capital market activity, and there are 75% of European hedge fund assets in the UK in the mean
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