The EU is a single market of more than 500 million people, representing an economy of
almost £11 trillion and a quarter of the world’s GDP. This single market created its single
currency, the Euro, to improve its intra-European trade and to increase the capital flows.
According to the research, the UK has a trade surplus in services with the rest of the EU of
£17 billion and the UK exporters rely on inputs from EU companies more than firms from
anywhere else. (May, 2016) Because the EU countries are the U.K.’s largest trading
partners, Brexit will affect heavily across the Europe including the U.K. due to the
uncertainties of both import and export.
As for Brexit’s impact in the world, some people have mentioned it could lead to the next
recession because the negative impact in Europe will eventually hit the world. From the
article at politico.com, Danielle Pletka mentioned about Brexit as a warning sign of a more
populism world and bad decisions can worsen the world economy.
From Brexit, I strongly believe that the social factors, the political factors, and human
resources will greatly impact economic growth. The major reason for the UK’s departure
from the EU is the free movement of people. It is said that there’re a net 333,000
immigrants came to the U.K in 2015 and 184,000 of them were from the EU. The
opposing organization claimed that the free movement of people has allowed those
immigrants to take British jobs, and lower British wages. However, they forgot that the
free movement of people is a great chance for people with great skills to contribute to the
country and improve the quality of the output.