The forever crazy episode of Brexit is one for the history books. One of the founders of the great trading bloc called the European Union saw one of its leaders exit the union in 2021. The 2019 vote that essentially tanked the British economy is still haunting them. The biggest question sitting in front of us is can the United Kingdom recover without the EU?
Prime Minister Rishi Sunak with Ursula von der Leyen. Image Credits: Windsor Guildhall
Statistics have been showing this is not the case. Trade output in 2021 was 7% lower than 2019 levels (pre-Brexit). Expected gross GDP is likely to fall 4% over the next 5 years because of its exit. In the first quarter of 2023 the UK saw a negative GDP of 1.4%. It was the only G20 country to produce a negative GDP, and that includes Russia and Ukraine. Britain is also short 333,000 workers in essential areas of the economy. In the beginning of 2023, over 500,000 workers went on strike in just one day.
Britain’s economy is struggling. It renewed over 76 trade deals, but most of those were deals that existed whilst they were a part of the European Union. Apart from the economy, the United Kingdom is losing influence. The United Kingdom failed to create new steel trade deals with the United States. The UK is strictly moving to security alliances with Anglo-Saxon nations after re-affirming pacts with the United States and Australia. Nobody wants to work with the United Kingdom at the moment.
So how does Britain recover? An economy of $3.6 trillion, a leader in NATO and former global giant shouldn’t have any issues recovering? Well certainly that may be the case. Britain still offers great security, has a large exporting economy and global influence amongst its commonwealth. But that influence is falling, and falling fast. Countries are quickly leaving the commonwealth, Brexit has shrunk their economy and scandals within its nation’s politics are doing the country no favors.
The recovery starts internally. The government needs to sort out its priorities. The United Kingdom then needs to seek new allies outside of Europe and the United States. Trade with Africa, Latin America and the Middle East needs to increase. The United Kingdom should also look towards strengthening its relationship with India as a growing power.
If the United Kingdom expands its partners, it can expand its influence. The UK needs to focus on friendship and diplomacy in order to restore its competitive advantage on the global stage.
Author: Joshua Cheatham
