Pablo Soria de Lachica Analyzes the Implications of Brexit for Global Economy
Monday, May 20, 2019 7:50 PM
MEXICO CITY, MEXICO / ACCESSWIRE / May 20, 2019 / Among the momentous events of 2016 was the stunning outcome of the US presidential elections, but news that came several months earlier overshadow in importance the choice of the person commonly referred to as "The Leader of the Free World." Given the pivotal role of the United States in global affairs, it is undoubtedly critical who the American people elect, but this figure steers domestic and foreign policy for eight years at best. On the other hand, the United Kingdom's vote to leave the European Union made all realize immediately that few decisions in modern history would have as far-reaching and long-lasting consequences as Brexit - the popular term for the separation approved by Britons in the June 2016 referendum. The world's fifth-largest economy as measured by nominal gross domestic product (GDP), the UK will inevitably upset the balance as a non-EU entity, but the prevalent opinion is that Brexit is likely to have an adverse effect on the global economy, largely as a result of trade barriers being re-drawn, says renowned forex expert Pablo Soria de
After the fateful referendum vote, it quickly became apparent that a split from the EU would be anything but smooth and straightforward. The original exit deadline was March 29, 2019, but the overwhelmingly difficult task of drafting a deal satisfactory to both sides has led to two extensions. Leaving aside the societal division and the political discord in the country, the uncertainty perpetuated by failure to break the deadlock has weighed both on the UK economy and global growth due to its effect on trade and investments, Pablo
Soria de Lachica notes. The difficulty in making projections arises from the fact that the manner of the UK/EU split remains unclear. The parties may yet agree on a deal by the new deadline (October 31, 2019), but the prospects of a no-deal Brexit linger even though the immediate threat was removed through a March parliamentary vote. The consensus is that a "hard Brexit" represents the scenario with the worst consequences, especially for developing economies. According to a
report the World Bank published early in January 2019, crashing out without an agreement "is a risk to the UK and to Europe and any region that trades heavily with them. It means that countries in Eastern Europe, like Moldova and as far away as Georgia, and those in North Africa will be affected."
Soria de Lachica also points out that the impact on trade and the consequences for global economic growth are closely linked to the UK's crucial role in the financial services industry: the sector accounted for 6.5% of the country's total economic output in 2017, contributing 119 billion pounds and employing 1.1 million people, which represented 3.2% of all UK jobs. Should a hard Brexit occur, the benefits associated with the single market would be lost to London, which is expected to remain an important financial center but lose its current dominance. This will have enormous implications, influencing materially anything from the flow of capital to exchange rates. "Though a lot remains up in the air right now, it seems clear that in our global economy we can expect Brexit to affect the finance industry and real estate market, as well as trigger a possible global shift in financial power and economic stability," as noted in a Forbes article.
Soria de Lachica, the holder of an MBA from the Universidad Tecnologico de Mexico (UNITEC), specialized in international trading after graduation and subsequently became one of the preeminent forex experts working today. He leverages his vast experience to help clients maximize profits, assisting them with professional guidance and providing educational opportunities. At present, he is collaborating with Kartoshka - a company offering the latest technologies in sales, telemarketing, and customer support.
Pablo Soria de Lachica - Foreign Exchange Specialist: http://PabloSoriaDeLachicaNews.com
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SOURCE: Pablo Soria de Lachica