Economic Effects of UK Departure from the European Union

Posted in Economic Affairs on Oct 25, 2016


After the UK had announced that it was exiting from EU, the immediate impact was a significant reduction in stocks markets throughout Europe and weakening of the British currency. Flavio Maluf says these outcomes will generate long-lasting effects on the worldwide economy. Below are some of the effects of UK departure.


British economy’s consequences


UK has been the major supporter of EU, donating handsomely towards the organization. In turn, the country has attracted more investors and experienced economic growth. Flavio Maluf concurs with the opinions of Paul Figueiredo (FN Capital Operations’ Director) that the UK’s isolation block will lead to a significant reduction in the investment received by the nation.


Limited trade between UK and Europe


Being a member of EU comes with its privilege such as open trade among the member nations. Therefore, since the UK will cease to be a member, the country will have to come up with new tariffs, which might hinder foreign trade with the members of EU.


How Brazil is set to benefit


With UK ceasing to be a member of EU, Brazil will have an opportunity to enter into new bilateral agreements with the nation. However, Flavio Maluf warns Brazilians from expecting a lot from the UK since the country is not a key trading partner of the Portuguese-speaking country (Brazil).


Flavio Maluf and Eucatex


Wikipedia tells us that Flavio Maluf is in charge of Eucatex’s daily operations, investment strategies, and expansion plans. The company opened its production doors in 1951, specializing in the harvesting of eucalyptus trees and making of soft wooden boards. The firm sold its products to the firms in the construction sector. Since Flavio ascended to the position of CEO, Eucatex has experienced dramatic growth. Flavio has an academic training in the specialties of mechanical engineering and business.


In Flavio’s tenure, Eucatex has managed to make important upgrades to its operations and infrastructures in its headquarters in Brazil and other subsidiaries across the globe. Although facing stiff competition from Asian companies, Eucatex has remained an authority in the production and marketing of door, wood tiles, wall partitions, panels, and soft boards. Read more about Flavio on his official website here:

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