Question

You work at the European Department of the International Monetary Fund. The Department Director has requested that you prepare
a policy note on the trade relationships of the European Union and the United Kingdom. The IMF management is concerned about the effects of the
Brexit
Your task is to prepare a policy note that covers, the following points using the relevant economic concepts you have seen during the course up to
this point:
1. Provide general information about the UK Economy with the main macroeconomic indicators (GDP growth, unemployment rate, inflation,
current account balance...)
2. Show the importance of the UK Economy for the EU economy (in percentage terms, for example: UK GDP represent xx% of the EU Economy)
and the European countries trade with the most.
3. A discussion about the effect of Brexit not only for UK but also for the EU economy with regards to their balance of payments.
The policy note should have the following structure:
o Introduction
o Research Questions
§ Answer each of the research question using a separate section for each one
o Conclusions
§ Close the presentation with your personal conclusions based on your research
o References
§ References and the Bibliography have to be in Harvard’s citation style.
Make sure you provide an objective analysis and are backed up with actual data and proper analysis of the trends and figures

Answer 1

Question 1)The Top 10 Economic Indicators in The U.K.

1. GDP Growth

Every quarter, the ONS issues three releases – a preliminary first estimate, a revised second estimate, and a third and final estimate – of the quarterly change in the gross domestic product (GDP). The reports show GDP change, which is the main indicator of economic growth, as well as the contribution to the growth of the four main sectors of the economy: agriculture, construction, production, and services.

2-. A likely significant rise in the unemployment rate once the wage subsidy scheme ends, a possible reintroduction of restrictive measures and Brexit uncertainty pose downside risks. FocusEconomics panelists project GDP to contract 9.4% in 2020, which is down 0.4 percentage points from last month’s forecast, and to expand 6.3% in 2021.

3-

Economic Indicators for the United Kingdom including actual values, historical data charts, an economic calendar, time-series statistics, business news, long term forecasts and short-term predictions for the United Kingdom economy.

Question2)

Importance of the UK economy for the EU economy in percentage-

One central element (though not the only one) in the argument is the fact that the UK has a deficit in its trade with 27 EU member countries.

When we look at the share of the EU's exports going to the UK there is a choice to make about whether to include trade among the remaining 27 EU countries in total goods exports. If we do include it, the UK share is 6.2%; if we don't it's 18% of the total. UK exports account for 2.3% of the EU 27 GDP.

Question-3)introduction

Some effects of Brexit depend on the negotiated withdrawal agreement. Other effects depend on the trade deal to be negotiated during the transition period after withdrawal, or whether the transition period ends before an agreement is ratified ("no-deal" Brexit).^[1]

Brexit effect can impact entities inside the UK, or produce Effect of Brexit on Gibraltar. Brexit impacts the European Union. Brexit also impacts third countries.

Resarch questions-

1-what is Brexit?

2-Is Brexit good or bad ?

3-Impact of Brexit on EU economy.

Conclusion

As a result, leaving the Union will very significantly affect the companies located on British soil, impacting all areas of business but, most particularly, those in the financial sector due to the importance of London. There is no conceivable agreement that could be reached between the United Kingdom and the EU that would allow it to benefit from access to the internal European market but exclude it from the obligation to respect the free movement of people.

Refrences-

The economic effects of Brexit were a major area of debate during and after the referendum on UK membership of the European Union. There is a broad consensus among economists that Brexit will likely reduce the real per-capita income level in the UK.