Economic impacts of Brexit - Vatsal Jalan

Following the UK’s departure from the EU, its economic future is clouded with uncertainty and worry. As the most significant impact will indefinitely be trading, the UK is trying to negotiate a trade deal with the EU themselves as well as the US. However, if the UK fails to negotiate a deal with either of these parties, it could see a 4.9% loss in its GDP, which is approximately equivalent to a $140 billion loss over 10 years. Other major implications include the new visa and resettlement schemes that will be undergone following the 11- month transition period before the UK formally discloses its ties with the EU. The EU will also face a drastic decrease in their finances as the UK was a big contributor to its budget paying a substantial $10.2 billion annually.