e EU or not took place on the 23rd June. This referendum came out with shocking results to a lot of people within the UK and EU which caused the value of the pound to fall the lowest in decades. It was a very close vote as just over a half of the voters decided to leave; the result stood with majority vote of 52% for out and 48% in (Hunt and Wheeler, 2016). We will be discussing various topics as to how the Brexit affected the economy in ways such as the pound falling, trading, employment, farming and immigration.

As the U.K decided to leave the EU on 23rd June, it has had many effects on the British economy. One of our major concerns since the vote has been about how drastically the value of the pound fell.

Against one of the biggest currencies, the pound was “18% lower than the dollar” (Monaghan 2016). As you can see below, the graph shows how the value of pound dropped when the decision of the referendum was released. Since then, the value of the pound has stayed low as people are still unsure of what is going to happen when the article 50 is triggered and the UK has left the EU completely. These effects below are only the start of the consequences to the UK leaving. People stopped investing their money in the pound worried about what was going to happen. As there was a drastic drop in the investments in the pound; at the same time there are businesses at this point in time deciding to move their businesses to another country. A big example is Vodafone as they are looking to move their headquarters. The reason they wanted to move is because they liked the free movement of people within EU as it was easy to get capital and goods around and it benefited the company. (Palmer, 2016)

(Trading, 2016)

The value of the pound is depreciating as you can see from the chart above, the prices of houses within the UK is falling. This isn’t due to the high supply; however, it is due to the outcome of the referendum as people are not buying houses as no one knows what other drawbacks are going to be because of the UK leaving. Citizens of the UK are not buying houses at this current time because they are considering whether it would be the best decision to make an investment in a house and stay in the UK or move abroad depending on what other consequences we are going to have to face because of the vote to exit the EU. As the decision was made by the UK to leave, there has been a “0.4%” increase in the inflation rates as you can see in the graphs below (Statistics, 2016a). As the pound fell, the demand for goods and services increased because when the pound is converted into different currencies, the value of the pound worked out cheaper for other countries to purchase. Therefore, this was taken as an advantage as they would be able to buy more for the price they pay now in comparison to before. As mentioned, the demand has increased so the prices of goods and services have also increased too which has a similar effect on tourism. This has had a positive effect on our economy as the employment rate figures have gone down as the more tourism we get the more jobs there are to keep up with demand.