Since June 2016, the United Kingdom began the transition path of its exit from the European Union, after the results of the Brexit referendum (name coined by the term "Britain Exit").
Leaving the EU has meant major changes of all kinds for the country. Part of this transition has generated major transformations from a commercial point of view and that have required legal advice from professionals in the area..
The final release was scheduled for October 31, 2019.However, the European Union granted an extension of the deadline until January 31, 2020. The measure taken provides an opportunity for the United Kingdom to have more certainty in the outlook of its disincorporation, since it was not possible to obtain the necessary support to bring forward the elections to December 12 of this year, as planned by the British Prime Minister, Boris Johnson.
Brexit transition measures
The government of the United Kingdom and the European Union agreed at the beginning of October 2019 on a series of measures for the process of the British country's exit from the Union. The agreement set October 31 as the date of separation, but for that to be possible, the approval of the House of Commons of the Westminster Parliament was required.
Brexit continues to have an uncertain future in the U.K.. For the time being, the British economy has suffered heavily from the transition process. Its growth in the last 12 months has been the weakest recorded in a single year for almost a decade, so the Bank of England, as the UK's central bank, has cut its growth expectations until 2022.
A study by the National Institute of Economic and Social Research showed that the UK's GDP has fallen by two and a half points from what it would have been if Brexit had not been approved.. Growth in the third quarter of 2019 was 0.3% below the 0.4% estimated by specialists, this favorable performance is attributed to an upswing in the construction sector. However, analysis determined that in August the economy contracted 0.2%. The economy is expected to grow 2.1% in 2020, as opposed to the 1.6% previously estimated. In 2022 the approximations indicate growth of 2% versus the 2.5% that had been analyzed had Brexit not been effective.
The transformations following the United Kingdom's exit from the European Union remains uncharted territory. All the legal aspects related to the separation are still uncertain, as well as all the economic-financial situations that may arise for the United Kingdom and its commercial allies, even though analyses and estimates have already been drawn up that are closer to reality.