The Ongoing Impact of BREXIT on the UK Amid the Pandemic

The Ongoing Impact of BREXIT on the UK Amid the Pandemic
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Table of Contents TOC \o "1-3" \h \z \u 1. Introduction PAGEREF _Toc96856531 \h 32. Discussion PAGEREF _Toc96856532 \h 42.1 British Exit (BREXIT) – Reasons, Key Events, and Overview PAGEREF _Toc96856533 \h 42.2 COVID-19 – The Outbreak and Initial National Impacts PAGEREF _Toc96856534 \h 52.3 BREXIT & COVID-19 – Dual Shocks for the UK PAGEREF _Toc96856535 \h 62.3.1 Economic shocks PAGEREF _Toc96856536 \h 62.3.2 Supply chain disruptions PAGEREF _Toc96856537 \h 72.3.3 Workforce and employment challenges PAGEREF _Toc96856538 \h 92.3.4 Political relationships with the European Union (EU) PAGEREF _Toc96856539 \h 102.3.5 Political relationships with China PAGEREF _Toc96856540 \h 112.3.6 The financial sector in the UK PAGEREF _Toc96856541 \h 132.3.7 Emergence of FinTech solutions PAGEREF _Toc96856542 \h 142.3.8 Economic trade reforms with BEXIT & COVID-19 PAGEREF _Toc96856543 \h 152.3.9 Managing GDP with BREXIT & COVID-19 – Import/export insights PAGEREF _Toc96856544 \h 162.3.10 Speculations for foreign direct investments (FDI) PAGEREF _Toc96856545 \h 182.3.11 Foreign exchange (FOREX) viability and purchasing power PAGEREF _Toc96856546 \h 192.3.12 Influences of BREXIT & COVID-19 on the housing industry PAGEREF _Toc96856547 \h 202.4 Recommended Measures for Economic Growth & Stability PAGEREF _Toc96856548 \h 222.4.1 Role of government PAGEREF _Toc96856549 \h 222.4.2 Role of enterprises PAGEREF _Toc96856550 \h 242.4.3 Role of citizens PAGEREF _Toc96856551 \h 263. Conclusion PAGEREF _Toc96856552 \h 28References PAGEREF _Toc96856553 \h 29Appendices PAGEREF _Toc96856554 \h 34
1. Introduction
The United Kingdom (UK) experienced a series of events that shaped the country's economic, political, and social structures. Over the years, the UK encountered historical events, such as war, climatic changes, and other challenges. However, the UK rebounded with effective policies and strategic decisions to become one of the leading nations in the gross domestic product (GDP), currency dominance, education, industrial reforms, and employment (Faulconbridge & Bruce, 2020). According to Islam (2021), the UK experienced a paradigm shift after the British Exit (BREXIT) from the European Union (EU). BREXIT increased speculations for a downturn of the UK by exiting one of the largest trade alliances worldwide. Figure 1 in the Appendices exhibits the evolution of economic growth before and after the BREXIT. The UK economy has struggled since FY2016, marking the acceptance of a referendum for the UK to exit the EU with mutual consent (Drechsel, 2020). Unfortunately, BREXIT was not the only shock for the UK in the modern era. The shock accelerated after the COVID-19 outbreak in FY2019.
In FY2019, the global economy transformed after the deadly virus widespread in countries. Governments announced immediate lockdowns and reshaped the global trade between countries. Economies dependent on the service industries, such as the UK, experienced the most challenges to survive the pandemic (Dyer, 2020). The collective effects of the BREXIT and the COVID-19 introduced paradigm shifts across different industries, econom...