Business

Academics have found that Brexit reduced British services exports by 110 billion pounds


New research shows that Britain’s exit from the European Union has reduced British services exports by more than 110 billion pounds over four years, highlighting the far-reaching trade implications of Britain’s decision to leave the European Union.

Experts at Aston University in Birmingham found that UK services exports from 2016 to 2019 were cumulatively £ 113 billion less than they would have been had the UK not voted to leave the European Union in June 2016.

The researchers calculated the number by projecting how industries would grow from information technology and finance to business services if they continued on their previous paths, and compare that to how they have actually progressed since the vote in favor of Brexit. The gap was £ 113 billion.

“What we’re finding raises serious concerns about the damage to the UK services trade hub and the potential implications for the economy and jobs related to the service sectors,” said John Doe, professor of economics at Aston Business School.

The results indicate the fundamental challenges that UK service exporters will face in maintaining trade with the European Union following the conclusion of the post-Brexit deal with Brussels.

The agreement contains minimum provisions regarding financial and professional services – industries crucial to the British economy. In 2019 UK He had a surplus of 18 billion pounds In services trade with the European Union, against a deficit of 97 billion pounds in goods.

2020 data were not included in the Aston study because the pandemic has greatly distorted economies. Du told the Financial Times that the trend of service companies to move away from the UK could accelerate as the impact of the pandemic fades.

The COVID-19 period has created difficulties in moving businesses and individuals [which] Slow down this transfer process. . . It will now get better, and get worse as companies see that there is not much going on in the negotiations between the UK and the EU. “I think this is only the beginning,” she said.

Financial services exports have been the hardest hit in monetary terms, as banks, insurance companies and asset managers have moved thousands of people and billions of capital from centers in the city and Canary Wharf to new centers in Frankfurt, Paris, Amsterdam and Dublin so they can trade. Seamlessly with post-Brexit clients. Aston’s research found that other sectors most affected in the UK include business services, travel, transportation and information technology.

Behind the scenes effect [from leaving the EU] Change is changing, said John Springford, deputy director of the Center for European Reform, a think-tank, citing his research and figures from the Office for National Statistics, the London School of Economics and the Tony Blair Institute for Global Research. He said the data showed that the UK’s trade with the European Union was down by a fifth due to Brexit.

“Brexit has already made Britain much poorer compared to the branch of history in which Britain has remained in the European Union – or in fact, in the single market,” he added.

Cumulative Irish services exports from 2016 to 2019 were £ 126 billion higher than trend-based forecasts to 2016. Aston professors argue that this is because Ireland won UK business after Brexit. Irish economists disagree.

He said, “It is clear that the services export boom in Ireland is mainly due to exports of information and communication technology (Facebook, Google, etc.)” Kunal McCoyleDavy Chief Economist, Ireland’s largest stockbroker, is referring to the information, communication and technology sector. “These companies were already operating in Ireland before the referendum and have seen tremendous growth since then.”





Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button