Financial and Economic Impact of Brexit and COVID-19 in the United Kingdom

Abstract

Covid-19 struck a hard blow to the globalisation process that has been preparing for reconstructional changes since the Brexit issue has become a reality. As the Brexit negotiations were not finalised in a predetermined time range, the United Kingdom had to face the desired reality and cope with the situation hardened by the EU dissatisfaction from their decision. Existing variety of predictions of what scenarios were the most probable may now be analysed; in what aspect they were correct in predicitons. Consequences of the Brexit reality still cannot be clearly seen due to the Pandemic of Covid-19 with ongoing appearance and problems, but Post Brexit reality is, as well as, Pre Brexit reality used to be, a focus of the research object of many scholars and economists. The scientific study presents an overview of the resulting (possible) consequences of a “hard Brexit” scenario and compares them to contemporary results. The changes that were occuring before Brexit and are occuring after Brexit in the United Kingdom‘s economy and financial sector, complicated moreover by the Covid-19 pandemic situation, can be observed in economic indicators, financial and investment variables. This study concentrates on a historical evaluation of key variables that may have an impact on the economy and financial sector in order to demonstrate the evolution of the changes and relationships that exist due to the Brexit. Results of this research have led to contributing and clarifying certain essential facts having an impact on investment decisions of foreign investors throughout the world and for the EU member states.