Is BrExit now impacting UK economics?
You'd be mistaken if you have forgotten about BrExit as it feels some time ago that the UK voted to leave the European Union and given the pandemic has put the world on pause it kind of took a back step.
The economic stimulus pumped out throughout the Pandemic could have also provided a blanket over the entire situation which was slowly burning in the background as the UK and Europe tackled how it should occur. Either a hard exit or a slow backing out.
Either way it was always going to lead to the inevitable economic hit to the UK despite many older people wanting a return to the "old way" where you could buy cheaper bread and milk from locally produced stores. Although many of us wish that return but many of us have been the root cause for it's disappearance as we vote with our wallets.
Leading BrExit
For those that may not recall or whom have forgotten many anticipated BrExit would be a total failure although Boris Johnson was it's biggest campaigner and drove the movement. Out of pure luck or out of not wanting to put their names to history others backed out of the Prime Ministership race and Boris got his wish to continue driving BrExit.
The world watched as surely he knew he couldn't do it and it was going to wreck havoc but I have to give the bloke some credit because deep down I think he knew it was going to backfire but he had to commit to his word and he did. Although all he really did was delay, delay and more delay.
Luckiest Prime Minister in History
As it was the universe had different plans and in an event I have always said "How lucky is that!" Boris' time as the Prime Minister implementing the BrExit hit for him a lucky savior, COVID19. A global pandemic froze all things and bought him more time and more time in office looking like a leader.
BrExit was one of those things that was always going to fail but it caught a lot of people off guard as they didn't think the general public would actually vote in favor of it. But they did and now it had to happen if I was Boris in all honestly I would have done the same thing. Committed and taken the leadership I am sure no one saw all the minority parties and divisional groups causing problems on the ground being some of the main catalysts in ensuring BrExit happened.
Even though COVID acted as a bit of a Mask for BrExit it has contributed to an even larger problem, Debt.
Where did that Debt come from?
Recently announced is the UK Debt is sitting at 98% of GDP and lets get right to it, what does that mean? more than likely we're going to see a recession and we're already seeing the pound take, well.... a pounding and losing significant value. Let's not forget the Liz Truss debacle which has given the UK its shortest standing Prime Minister.
Given that the UK has committed to BrExit long before the pandemic we can anticipate many European nations wishing to cut ties with the UK sooner rather than later as they face their own economic struggles and try to save their own nations from economic collapse.
Energy Crisis Causes more pain
Truth be told it was probably the worst historical moment to pull a BrExit but no one has a crystal ball had they known that a pandemic was going to hit and now a European energy crisis I doubt BrExit would have gone through.
With the UK Pound now weaker and rising oil and gas prices the coming winter for the UK as it tackles BrExit and a growing public sector debt is going to be telling. BrExit will go down in the history books as one of the worlds largest failed policies and I bet my kids and their kids and kids, kids, kids will be learning about it in their lives to ensure it doesn't happen again.
The real question currently is what is going to happen? Will BrExit continue or will Europe take the UK back that's if UK citizens want to rejoin.
Stay safe, Stay well
Image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services