Brexit heavily affects UK economy

Brexit heavily affects UK economy

In terms of overall surge, the United Kingdom appeared to be the weakest in the Group of Seven economies for the last year, and there’re other signs that the fatal vote to break up with the European Union has left its mark as well.

Net migration of EU citizens into the UK nearly halved for the 12 months to September, according to official data.

Immigration happened to be a reason why many Britons decided to abandon the European Union, although industry groups are afraid that Great Britain is getting a less attractive place for the employees, and this especially applies to such sectors as construction, engineering and healthcare.

According to Google search data, the overall number of folks in other European countries surfing online for jobs in the UK has reached a fresh minimum.

The United Kingdom has long lagged other EU nations in terms of investment.

While the Bank of England actually expects business investment to tack on in 2018, it’s still muted given the strength of the economic upswing worldwide. Mark Carney, BoE Chief has told that Brexit could be the probable reason of the poor surge in investment in the UK.

Versus their counterparts in the big EU economies, UK manufacturers are reluctant to prioritize the type of investments, which improve the overall efficiency of their output, according to a long-running European Commission poll.

Meanwhile, UK factories are most likely concerned with merely replacing worn-out machinery, which could be a direct consequence of poor previous investment, as the poll pointed out.

The evident weakness of long-term investment planning is what finance minister Philip Hammond considers to be a challenge. He’s eager to snap the UK out of its long-term productivity stagnation by simply stimulating business investment.

UK consumers have been heavily affected by higher inflation provoked by the dive in the UK currency after the Brexit vote as well as poor wage surge.

 

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