Can Britain survive economically post-Brexit?

Can Britain survive economically post-Brexit?
0 Flares 0 Flares ×

GRI Debate: What will Britain’s economy look like after Brexit?

In June, Britain voted to leave the European Union after decades of membership. The political consequences were immediately apparent, with a new Prime Minister stepping up to the plate to navigate Britain’s future in murky waters. But more long-reaching will be the economic consequences. In this debate, GRI asked two of its top analysts to analyze what that economic future might look like.

The case for why Britain’s economy is in trouble

Etienne Desjardins presents why, due to a variety of problems ranging from loss of access to the European Single Market to financial firms and banks leaving London, the outlook for Britain is bleak.

“Half of all non-EU firms’ European headquarters are located in the UK, an economy less than 20% of the whole. Loss of access to the single market will significantly hurt the UK’s appeal to foreign firms and will trigger corporate relocations. This will not be a temporary hiccup: moving headquarters is costly stuff. Short of a comparable shock in France or Germany, those firms will not be coming back.”

Read the full article here.

 

The case for why Britain will, against expectations, profit from Brexit

Rayhan Chouglay presents why, despite a common perception that Britain will suffer from Brexit, the country actually has an opportunity to not only survive, but to thrive.

London is a city often grouped together with New York, Singapore and Hong Kong as a strong financial hub. While the idea of an independent London city state is an extreme reaction, the idea of London being the heart of a strong UK is certainly true. If the government can focus on demonstrating that London is in fact in a better position outside the EU, due to being outside EU red tape and having a stronger legal system, then it can potentially allow it to become even more successful than it already is.”

Read the full article here.

 

GRI Debates provide critical insight into the world’s most challenging political risk topics. Through well-balanced opinion based articles, GRI Debates offer a forum for deeper discussion into how major political decisions and security challenges affect markets, investment, and economic growth across the globe.

About Author