UK Wealth Falls $1.5 Trillion After Brexit

By Tamanna Desai
Tech and Innovation Editor

Since the United Kingdom (UK) decided to leave the European Union (EU) on June 23, sources say that the country’s economy has been on a serious decline.

Although the UK exceeded analyst’s growth expectations for the banking and overall economy, the growth was still unsatisfactory.

According to BBC, analysts expected the Britain economy to only grow .03 percent however it actually grew .05 percent.

After former prime minister, David Cameron resigned, Theresa May filled in his position and announced deadlines for the UK in order to be completely removed from the EU.
With her deadlines, the UK will be a separate entity by the Summer of 2019. However, the country’s economy might see more decline for the next two to three years.

Already, the value of the pound has declined which has internally created a decline in household wealth.

CNN Money says, “the pound has lost 15 percent of its value following the Brexit vote”. It has been projected that China will produce the most millionaires and the UK will fall behind China in the US.

Spokeswoman Sally Copley is a representative in the Oxford and District Labor Party and was quoted by theguardian.com saying, “The wealthiest one percent of the population – who own nearly a quarter of all the country’s wealth – continue to do well whilst so many people in Britain are just about managing to stay above the poverty line”.

Although not good for the millionaires in the UK who might not be able to uphold their millionaire status, this decline in the pound has proven to be very beneficial for outsiders especially those living in the US and in China. Travel to the UK has become cheaper and airlines have seen an increase in passengers traveling to places such as London, Scotland, etc.

Prime Minister (PM) Theresa May, has yet to establish a concrete plan as to how the UK will deal with immigration and trade. BBC.com states that religious and racial hate crimes have gone up 19 percent since last year. The results of the new immigration laws and trade laws will have a direct result on the hate crimes in the UK.

Overall, the Brexit vote has had a negative influence on the UK so far, and analysts are curious to see how the PM will be able to keep the economy afloat and completely detach from the European Union.

A version of this article appeared in the Tuesday, December 13th print edition.

Contact Tamanna at
tamanna.desai@student.shu.edu

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