Topic > Effects of Brexit - 1281

If British consumers and businesses reduced their imports from abroad due to their declining purchasing power, it would cause a slowdown in other economies. The Economist Group estimates that for every one point drop in growth in the UK economy, other European countries will suffer a decline of between half and a third of a point, resulting in lower profits for European companies. That's why stock markets across Europe collapsed immediately after the vote. And since the UK is one of the largest importers of Asian countries, including China and Japan, Brexit has also caused a strong negative reaction on Asian stock markets. (Nikiforov)It goes without saying that the United Kingdom's decision to leave the European Union has played a role both domestically and internationally for the economy. The initial reaction to the post-Brexit economy was negative, although it is catching up over time. As the United Kingdom's identity grows following its exit from the European Union, economists can only predict what path its economy will take and how this will affect the world market as a global market.