Harvard Business School (SPNM), MBA: SP Jain Institute of Management & Research, Master of Information Technology, Virginia Tech.
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BREXIT- An Event That Created A Stir In The Global Economy
October 06 2023
Brexit is a term used to describe the exit of Britain from the European Union. The European Union - often known as the EU - is an economic and political partnership involving 28 European countries. To decide whether they should be in the European Union or not a referendum that is there were votes taken from all who were eligible to vote. This process took place on Thursday 23rd June 2016.
The result was in favor of leaving the European Union. The leave won by 51.9% to 48.1%. There were more than 30 million people voting and the turnout was 71.8%.
After the referendum was lost, Prime Minister David Cameron announced his resignation as the Prime Minister of UK. He was in favor of staying in the EU and he preferred best that the captain for this ship be different.
Later, the former secretary Theresa May was elected as the Prime Minister. It is said that even though she was in favor of staying but there was no enthusiasm from her side. She was later not in favor of staying in the EU after the referendum was over. She believes that is what the British people want.
It was predicted by David Cameron, his Chancellor George Osborne and other senior figures that there will be an economic crisis if the UK goes in favor of leaving the EU. The crisis that was predicted is unemployment, fall in house prices.
After the results were out, some of the predictions were true. The recession in employment was seen (4.8%), House prices had become low (9.4%) and inflation rate had risen to 2.3% in February. Pound had come down and was 15% lower against the dollar and 10% against the euro. But there has been 1.8% growth in the economy thereby coming second to Germany 1.9%.
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Author
Rahul Singh
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