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The already-struggling British economy may slip deeper into recession if it fails to reach a trade agreement with the European Union before the Brexit transition time frame ends at the end of this year.
The economic impact on the UK will be three times bigger than what coronavirus has put, warns a study conducted by the independent research organisation ‘UK in a Changing Europe’.
The country could face several economic challenges in the days ahead. According to government analysis, a no-deal Brexit has the potential to rub off 7.6 percent of the country’s GDP in comparison with the current trade measures over the next 15-years.
Risks Highlighted by The Report
Though there are several risks which UK businesses could face if no-deal Brexit becomes a reality. Below are some of them:
- It could be a challenge for UK manufacturers such as carmakers if EU tariffs compel European importers to increase prices.
- It is a strong possibility that food prices could increase, considering the new tariffs and disruption in supply chains, which would pose a hardship for low-income groups in the UK.
- The UK’s financial services industry could face new hurdles to European trade if the EU puts a barrier to the UK for data adequacy norms.
- It could also impact old travellers as it may become expensive for them to plan a trip given that European Health Insurance Cards would not be valid.
