Save the date: it’s going to be on March 29, 2019, when the United Kingdom will no longer be a member of the European Union. But what will it actually mean to the people and the whole country? How will the economy be affected and what have the industries and businesses planned to change for the life after Brexit?
The Subtle Economy Changes
“Brexit has subtly changed the economy, so the historically sluggish current pace of expansion is still fast enough to stoke prices and keep inflation above target,” said Brian Swint in a Bloomberg article.
The Banks Are Moving
The biggest banks in the world have already planned to relocate their headquarters on EU grounds, making sure that they will continue their work by the time U.K. exists the European Union.
Sam Woods, the U.K.’s top banking regulator said that the relocation of these headquarters would mean about 10,000 jobs less for people that live in the UK, and that will happen from “day one”.
Property Prices – High or Low?
It was first believed that if the industries will be hit hard by Brexit, people would leave London and other major cities for Europe. That meant empty stores, warehouses, office spaces. But in reality, the weak pound has attracted investment from Hong Kong and the commercial property is still high in demand.
Retailers are Hurt – The Pound Loses Value
The retailers in Britain are going through a rough time, especially in sterling – as they depended on imports. Non-food retailers took the biggest hit, some of them collapsing, like Toys ‘R’ Us U.K. and Maplin.
Britain might also experience a food crisis like never before, as meat, fish, fruit, dairy products and vegetables will be affected by the disruption of import.
Cars will also cost more in terms of assembly – there could be costs of 2,372 pounds extra! Not to mention aerospace manufacturers that will experience delays because of customs.
Drugs Will Cost Extra
The European Medicines Agency will have to be moved from London to Amsterdam and in the process, many scientists and a lot of research funds will be lost. Moreover, Britain’s largest drugmaker GlaxoSmithKline said that in two or three years will have an increase of costs as high as 70 million pounds ($100 million), and they expect additional costs each year.
Media Giants Think of Moving Out
Walt Disney Co and Discovery Communications Inc. are thinking of moving on EU grounds too, as a contingency plan in case they don’t get a transition deal.