- What has Brexit done to the UK’s currency and trade?
- Why do foreign investors leave the UK?
- How did Brexit Shambles push people to the edge?
Brexit reality is biting Britain hard as uncertainty makes investors flee the country’s market. The UK pound lost one-fifth of its value six years after the referendum on EU membership. Brexit shambles directly affected the UK’s economy so much that many people want to rejoin the EU today.
Brexit Devalues UK Pound
The pound experienced its biggest yearly fall since Brexit, while its exchange rate against other currencies has fallen significantly. The UK pound has lost nearly a fifth of its value since the Brexit referendum in 2016. Brexit broke Britain, and its powerful currency has fallen 19% to the US dollar. The pound ended 2022 while suffering its worst annual decline since 2016.
Investors Lost Faith in the UK
Brexit reality is more bitter as the central banks worldwide will force the pound even lower in 2023. In 2020 alone, the currency dropped by 10% against the US dollar. The pound’s worst performance in six years since the Brexit referendum. Brexit reality is damaging Britain, and foreign investors do not have faith in the UK market. Investors flee from Britain as Brexit shambles hit hard.
Brexit Ruined Investment OpportunitiesÂ
Uncertainty over future trade ties with the UK has damaged business investments. After leaving the bloc, former PM Boris Johnson boasted about even more businesses with the EU. He had said Brexit would leave Britain free to strike trade deals worldwide. But in reality, Brexit broke Britain by weighing on imports and exports while weakening and destroying investment in the UK.
The Other G7 Countries Recover from the Pandemic
The UK’s investment sector is becoming weaker, adding to the country’s inflation problem. The UK is the only member of the G7 that has a smaller economy than before the pandemic. Brexit is the main reason Britain is doing worse than similar economically powerful countries. Brexit shambles hurt businesses and workers across the UK. Thus, rejoining the EU is the best way to get on track.
The UK Foreign Trade Suffers Decline
What the Brexit shambles has done to the UK’s imports and export is disappointing. Britain is less open to trade, and Brexit has damaged the competitiveness of its exports on the world stage. The country’s export needs to catch up to the other developed countries. The declining exports to non-EU countries could signify that UK businesses have become less competitive.
Brexit Is a Burden on Export
Trade data shows that the UK’s businesses need help attracting foreign customers. As global good trade rebounds, the UK’s exports are lower than the pre-pandemic levels. The Covid pandemic and Brexit have weighed on UK export capability and led to slower economic growth. Brexit broke Britain, and the uncertainty after leaving the EU has caused underperformance in UK’s trade.
Conservatives Ignored Brexit Shambles
The Office for Budget Responsibility, the fiscal watchdog, has before warned about the fall in the UK’s long-term productivity. The watchdog has informed Brexit could drive a 4% fall in export, and exporters could face numerous challenges. The poor performance of UK trade and export decline worries the country’s economy. This is the Brexit reality that the Conservative Party has always tried to skip.
Investment in UK Market Is Risky
Major investors have reconsidered their involvement in the UK’s economy. The country will slowly recover from a global recession after months of political turmoil and years of Brexit uncertainties. There is a high risk in the UK market as the UK pound has remained down against the US dollar and euro. Brexit broke Britain while Brits have to endure a prolonged recession.
Britain Braces for Recession
The UK has fallen into a recession which caused the biggest fall in living standards. The worst inflation in decades is eating British households’ incomes. Meanwhile, Brexit has contributed to soaring food prices and higher inflation. As household incomes are squeezed, governmental taxes keep rising. Taxes will increase to 37% of GDP by 2027, the highest level since the second world war.
Brexit Eats Workers’ Income
The UK suffers from the cost-of-living crisis, and Brexit makes it worse. The Resolution Foundation think-tank and academics from the London School of Economics have already exposed the Brexit reality. They compared incomes with what would happen if the UK remained in the EU. Due to the rising living costs, British workers lose more income six years after the referendum.
Scots Pay the Price of London’s Choice
The shadow of Brexit will remain there, and many people think the UK should rejoin the EU. Scotland is the least happy among the UK nations after leaving the bloc. Scots are out of the EU against their will and have supported nationalist politicians who seek to rejoin the EU. Scottish nationalists do not want to pay the price of a failing Brexit.
Scottish Nationalists Want EU MembershipÂ
Brexit broke Britain’s economy by creating new customs procedures. Trades between the UK and the EU have been more difficult and costly. The cost-of-living crisis across the UK is worse than in any other European country because of the calamity of Brexit reality. Brexit broke Britain economically and socially. Most Scottish devolved Parliament is nationalist members who want to leave the UK and rejoin the EU.
Demand for Another Referendum Is RisingÂ
If Scotland or the UK would ever rejoin the EU, foreign investors would freely go back to Britain’s market. Also, Brits could have a passport that allowed them to live, work, and retire in 27 other countries. In a recent survey by the Independent, 65% of Brits said they would support another referendum on EU membership. According to the study, 54% said Brexit was the wrong decision that made the economy worse.
UK Has Less Economic Progress
Brexit reality is hitting the country, and the Center for European Reform think-tank estimated 11% weaker investment. Eighteen months to June 2022, the UK’s goods trade was 7% lower than it would have been had the UK remained in the EU. Brexit shambles created less economic progress and the cost-of-living crisis spurred by high inflation. Brexit broke Britain and left the country’s economy in a fragile position.
Politicians’ Decision Imposes Financial PressureÂ
The British pound has fallen to a superficial level in recent months, which could push inflation to a higher level. So, imported goods and services are more costly, and British households are under more financial pressure. The UK is experiencing one of the worst-performing economies among the developed countries. Most of the financial pressures are the results of Brexit, imposed on the people by the politicians.
