Flavio Maluf is a Brazilian businessman. Currently, Maluf is the president of the company Eucatex. The Eucatex Group operates in the construction and furniture industry. The Eucatex Group helps meet the needs of furniture manufacturers, cars, toys, doors, and plates. The Eucatex Group also has a Forestry Unit.
Recently, Maluf, while speaking in his native Portuguese, offered his thoughts on the potential economic consequences of The United Kingdom exiting The European Union. The comments in Portuguese did translate to English. After the UK exit, there was a large drop in stock markets across Europe. The British currency has also been drastically devalued. Maluf feels this could greatly impact the global economy.
Maluf notes on his blog, that Paulo Figuieredo the Director of Operations of FN Capital, states that the UK insulation will cause a drop in the investment received by the country. Figueiredo suggests that the movement of goods between European Union member countries will lead to negative results.
In European Union countries, there is a customs union that permits free trade without tariffs and quotas on products from other countries. Using the block output, The UK will have new rates. This may harm foreign trade, however Maluf does see some ways that this may benefit the UK. Maluf envisions potential bilateral agreements that were not possible before.
Brazil may benefit from this situation due to the possibility of making a bilateral agreement with the United Kingdom. The business department at New York University believes that these benefits are limited. Maluf notes that the UK is not a major trading partner of Brazil.
The United Kingdom’s exit hurts Germany and France as well, because there is a lot of structure in those two countries. France is showing signs of weaknesses in its economy, according to Maluf’s Twitter posts, leaving the burden on Germany to pick up the slack. Maluf notes that there is uncertainty due to the impact of the UK exit from the European Union, and it remains to be seen how the impact of the exit may translate to other countries in the European Union and Worldwide.