After Brexit, the exit from the European Union (EU) by the United Kingdom (UK), the global economy has been strongly impacted. This is according to world economic experts, including Flavio Maluf, the founder and CEO of Eucatex. His company is a sustainable materials producer in South America. Maluf points out that after Britain left the EU, the European stock markets all dropped at least 12%. The exit also hurt the British pound sterling, with a severe devaluation as bad as it had dropped in 1985. Maluf says to watch for the effects on the global economy to last for many more years.
Maluf says the signs are easy to read. They include the fact that the UK was limping in a generally growing global economy, with growing inflation, instead. Maluf has noted that it was the UK that gave the most contributions to the EU. In 2014 alone, the UK footed € 11.3 billion in bills. This is a major blow to the EU.
He also noticed that the UK’s foreign trade will likely be negatively impacted, as they will start charging tariffs to other European countries, just as they did in the past. But, because Brazil is not considered a big trade partner with the UK, he does not believe Brazil will greatly benefit from Brexit. Brazil sells less than 2 percent of their exports to the UK. Maluf sees all of these issues combining into big trouble in the future, unless something wonderful happens to restore the global economy, and soon.
Flavio Maluf is the President of Eucatex in Brazil to produce Eco-friendly, truly sustainable construction and manufacturing materials. Brazil has grown considerably in sustainable materials exports in the last 20 years. The help these materials provide for our fragile Earth’s environment may be greater than we know. He has a Mechanical Engineering Degree from the famed FAAP. Besides Eucatex, Flavio has several other successful businesses.