European Economy after Brexit

Business - Akanksha Singh - Nov 10,2016

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europe struggles after brexit

While European Union struggles to recover after the infamous and harsh ‘Brexit’, Britain puts in serious efforts to stabilize it’s economy

A lot has indeed been said and speculated after the famous “Brexit”, most about how inconsiderate and foolish, was this on Britain’s part. Economists have called the “Brexit”, “Britain’s foolhardy”, or technically speaking “UK inviting in the recession”.

Though not yet ‘confirmed’, the mere idea of Britain leaving the European Union has threatened the European and the Global Market enough. European investors are scared and unsure, so is the world, for Europe’s economy plays a major role in contributing towards the Global economy. The mesh that these economies create, are tangled and dependent over each-other for survival; so if Europe falls, the world falls.

But amidst these speculations Britain has already started taking precautionary steps. Bank of England stated that it “has been preparing’ for something as such, yet the banks growth has been stalled for the next three years. It seems like quite a tough test for the new government lead by Theresa May; for May has been on her heels, trying to reignite old ties with India, signing deals and taking far-fetched measures. The manufacturing sector in UK has seen a boom, a growth spurt after the threat of recession and weakened currency increased exports; the service sector soared and in the last three months UK’s economy has grown by 0.5% itself.

Meanwhile in the current European Union, Germany saw a decline in their manufacturing orders by 0.6%, this September.  French GDP grew less than expected, while Spain’s economy slowed down slightly. Greece is all set to receive fresh loans, due to the effort and the stand Germany took for it in EU. The economy that would suffer most in this dog-fight turns out to be Ireland. Ireland’s economy might shrink by 4%, after the ‘Brexit’, Unemployment could rise up-to 1.9% and salaries decline by a staggering 3.6%, over the next ten years.

All indicating towards signs of slow recovery for these economies, from the stressful and harsh economic turmoil that the Brexit created.