Category Archives: economy

Consequences of Leaving the EU As Explained by Economic Expert.

The act of the United Kingdom exiting the EU after the June Referendum triggered serious economic implications. One of the immediate effects was the major fall of stock markets with 12% drops being registered. There was a los a major blow to the British currency, which reached its lowest since 1985. According to Flavio Maluf, the move is bound to attract major and lasting global economic impacts. The following examples point out possible scenarios.

 

Direct Consequences to British

 

The 2014 EU figures reveal how British contributed to the entity with its €11.3 billion expenditure compared to the €6.9 billion it received. This may have contributed to the exit decision according to experts, as British believed that it contributed to the inflationary pressure on their economy.

 

However, according to Flavio and Paulo Figueiredo of FN capital, the British will experience a drop in the investments it receives as a country. There is also an expected negative result since free movement of goods and people from EU member states has now been stopped.

 

Member states of the EU can still trade freely without extra quotas and tariff charges due to the customs Union. However, the UK exciting the bloc translates to new tariffs being set thus affecting the country’s foreign trade especially with the EU.

 

Brazil stands to gain from this exit because it can make bilateral agreements with UK without having to go through EU negotiations and standardization. Even so, these gains will be limited to the 2% that UK contributes since it is not a major trading partner of Brazil.

 

The EU, on the other hand, suffered a major blow with UK’s exit. The UK was a major part of the three countries that formed the EU’s structure. In fact, it is now German’s responsibility to sustain the EU economically.

 

About EUCATEX

 

Eucatex Is a Brazil based company that specializes on in the marketing and production of insulation and lining from eucalyptus wood fiber.. However, its dealings are mostly international. Its products are sold all over the world in Europe, Asia and North America.

The company has grown under the leadership of Flavio, extending to become an internationally recognized supplier to furniture manufactures, large construction projects, packaging industries, the automotive industry, door and plate manufacturers and the toys industry.