Following reports on the United Kingdom exiting the Commonwealth in June, Mr. Maluf highlighted the effects of that move to the economy of Britain. The resulting effect was a major recession in European stock markets. The economy dwindled by over 12%, with an additional drop in the sterling pound. Since 1985, there has never been such drop in the Britain economy. Most experts explained that the exit could generate severe impacts to the economy of the world. With his experience in business, Maluf pointed out some of the effects.
Effects of Brexit to Britain Economy
Following a figure release by the Union of European markets in 2014, the U.K massively contributed to the entity by approximately £ 11.3 billion. In return, it received £ 6.9 billion, which according to reports, heightened inflation in British. Flavio explained that the isolation of Britain would cause an adverse drop in receipt on investments. The end of exports and imports of goods and services would also lead to negative results.
Brexit to U.K and Europe
In the Commonwealth countries is a union that grants free trade without tariffs and additional quotas on exports. Brexit would cause new rates to the free trading practices. The result would be harmful to foreign trade with EU. Maluf said that according to Otto Nogami, a specialist in the economy, the exit would benefit the United Kingdom. This is because the country would sign bilateral contracts that were otherwise not viable initially.
Brazilian Imports and Exports
The United Kingdom exiting Britain could be beneficial to the economy of Brazil in that, it will be in a position to enter into bilateral contracts with the country. Unlike now, the agreements were initially negotiated on the standards of EU countries depending on the type of products offered. The result was the country suffering all impediments and rates.
About Flavio Maluf
Maluf is a revolutionary entrepreneur who owns Eucatex companies. He is also the president of Grand Food. Being the head cheerleader at Eucatex, he is in charge of day to day operations. He also serves as Eucatexs’ chief executive officer. He has a vast understanding of how the economy runs in both domestic and foreign markets. That is why his opinion on Brexit was instrumental.