Britain's Failing Economy

Background:

    In 2016 the UK voted to secede from the European Union to gain more control of their country, particularly regarding trade and immigration. Before Brexit, the UK had open borders with countries in the EU and followed regulations set by the EU. Brexit resulted from a spark of nationalism in 2016, but the UK did not officially separate until January 1st, 2020. Unfortunately, they separated right before the COVID-19 pandemic, which has had tremendous effects on their economy.

Immigration:
    Brexit has had the most significant impact on immigration. Britain implemented new policies that made it harder for EU citizens to immigrate into the country. By doing so, Britain effectively cut down on the amount of foreign low-income employees, creating job shortages in sectors like truck driving. The truck driving shortage has created a lot of problems with the energy industry and food industry. COVID-19 added to the deficit because it made it more difficult for European truck drivers to get back into the UK, but the new policies have slowed most immigration.

"Covid was just the straw that broke the camel's back, in the sense

that things have just become less pleasant here [for EU workers]," L. Alan Winters.

Energy Crisis:
    Britain has an ongoing natural gas and electricity shortage, leading to a spike in prices. This is partially due to China's increased demand and Russia's deficit. Additionally, Britain's shortage is tied to a lack of storage facilities. Since Britain seceded from the EU, they no longer have access to their internal energy market. The natural gas shortage has been the most damaging. It has prevented trade and resources from entering the country because there is not enough gas for truckers. It is estimated that Britain's energy prices will also rise by £500 million by the end of the year, equivalent to about $670 million. Britain can no longer rely on the EU for help, so they are stuck trying to figure out the situation by themselves.

Food Supply:
    Not only is Britain suffering an energy crisis, but they are also suffering from a food shortage. Since the UK is a northern island, they do not produce many goods in their own country. Instead, they rely heavily on imports from other countries. Unfortunately, when the pandemic hit, they did not have the same access to imports and could not rely on the EU for aid. On top of that, most supermarkets don't have enough staff to stock shelves with the limited materials supplied. Farms and food processors have also had to cut back on production because there is no means of transportation to get goods from a factory or farm into supermarkets.

“[B]y early December, UK shoppers will experience worse grocery

shortages than at the peak of the pandemic last year”

What Does This Means for the Rest of the World?:
    Britain's economic decline has implications for the rest of the world's global economy, which could ultimately create more conflict between countries. Britain is one of the world's largest trading partners, and if its economy continues to decline as it has been, it will affect other global markets. The UK trades a lot with the US, many European countries, and other global superpowers and trades with developing countries. Suppose they cannot supply the same amount of goods or income they did before these developing countries will end up in hot water. They won't be able to support themselves as much, which could result in conflict. Ultimately, the UK's struggling economy is a sign to the rest of the world of the damage COVID-19 had on countries and the damage of stricter immigration policy.

Sources:
https://www.cnn.com/2021/09/28/business/brexit-fuel-food-shortages/index.html
https://www.bbc.com/news/uk-politics-32810887
https://theonebrief.com/brexits-article-50-mean-business/
https://www.ons.gov.uk/businessindustryandtrade/internationaltrade/articles/uktradingpartnersananalysisoftraderelationships/2020