Great Britain is experiencing perhaps one of the biggest political and economic crises of the 21st century. The ruling Tory party is becoming more discredited by the day.
But what exactly are the causes of these factors?
Britain after "Brexit"...
January 2020 was a special month for the history of Great Britain as we know it. After a period of almost 50 years, the kingdom announced its withdrawal from the European Union. However, since that day, he has not been able to see the full benefit of this decision. Economists report that the country's GDP is still 5% lower than the expected economic growth after the exit. The general opinion is still mixed. The effects of "Brexit" on the UK economy can be viewed on 3 topics: trade, migration and investment.
Trade.
The most obvious and biggest impact of Brexit must be on this area. Considering the economic opportunities that the EU has created for the countries within the union, the UK's trade performance has indeed suffered significantly. The country's Office for Budget Responsibility notes that the UK's "trade intensity" has fallen significantly and far below that of other developed countries. The Office found that Brexit had a large and persistent negative impact on UK goods exports, with a particularly large impact on smaller firms.
Migration.
The suspension of free movement between Europe and Britain is considered to be perhaps the biggest upset of the people on the island. As powerful as a UK passport is, it doesn't offer the same opportunities as an EU passport. Especially this was harmful for both sides. According to the research, it is noted that if the number of labor force coming to Great Britain from Europe was 200 thousand per year, now there is no sign of those numbers. Undoubtedly, this also led to a decrease in income from labor. It is interesting that before Brexit happened, it was mentioned that the number of immigrants in the country is increasing because it is a union country. However, after leaving the union, the number of immigrants in the country increased even more. Restrictions on free movement have also brought the issue of Ireland back to the fore, Britain's biggest problem.
Investment.
According to a study shared by the London Center for Economic and Political Research, a 10% decrease in business investment has been observed since the Brexit issue began to be discussed in 2016.
Thus, we can note that this large output has caused enough damage to the country's economy. It should be noted that according to the last report of 2022, the GDP of the country has decreased by 5.5%, or rather by 33 billion pounds.
In recent days, the situation in the country's internal politics is tense. Mainly in the field of work and education. The country's population is completely dissatisfied with the activities of the Conservative Party. According to the released report, the income to the country's budget this year was sufficient. Also, although the capital expenditure of government departments is quite high, the results are not in the middle. The unemployment rate in the country was 4.2%. This means an increase of about 1 percent compared to last year. 60% of Conservative voters expressed dissatisfaction with the party, according to a poll conducted by the Lord of Parliament Michael Ashcroft. The Conservatives, who lost their influence in the held municipal elections, are going through difficult times. The ministers of the country's institutions are also resigning from their posts. We can say that they have already returned to the state of self-isolation in world politics. Time will tell how long this stagnation will last. The popularity of the Labor party in particular will have a direct impact on both the domestic and foreign policies of the country.
Akbar Novruz
