At some point in 2016, it was announced that the UK will be leaving the European Union and the term Brexit was coined. Brexit stands for Britain’s exit (from the EU). This lovely term was used and misused so many times since then, and so many memes were created that most people were aware of what was going on, even though they had no interest in the UK’s relations.
Brexit was considered by many to be a bad choice. Let us take a look at how it affected the UK and its economy.
Trade Was Worsened
The first thing that comes to mind when a country exits the European Union is trade. Trade was worse after Brexit, way worse. A new deal had to be made with the EU and all businesses had to suffer more taxes and more expenses.
Even though more than a year has passed since Brexit, no trade deals worth mentioning were signed, nothing that even puts the UK back on where it was prior to Brexit. There are talks about signing a deal with the US, but that seems years away, and the economy has already taken a solid chip. Trade has dropped a solid 15.7% and it is likely going to drop more when stricter customs inspections start taking place.
Laborers Have Pulled a Brexit
With the UK pulling out of the EU, most laborers pulled out of the UK, as soon as 2020 hit. Some pulled out because of the global pandemic but most pulled out because they saw that the economy was going to bits and that they were better off taking their work elsewhere. Britain relies heavily on EU and non-EU workers during the season in the hospitality and transport sectors, so most industries took a huge hit. Fuel prices increased as tanker drivers left and there was a decent shortage of workers in many industries.
Finances Are Down
Bankers and banks are being pushed by the UK to move their business outside London. This is problematic for London residents because they will either have to move or lose their jobs. It is estimated that around 20000 citizens of London in the banking sector will lose their jobs.
Not Everything is Bleak
Northern Ireland has almost completely recovered from Brexit, returning to a state prior to Brexit the first. They don’t have a border with Ireland, despite still being in the UK. The car industry is also recovering and has made strides despite the economy dwindling. Non-EU cars were also imported, from China, Japan, and the US, which is at least a bit of a silver lining.
All in all, Brexit was probably not a good choice for the UK, from the current point of view. With time, Brexit might start making more sense. We will have to wait and see.