The economy is now 2% smaller than it would if the United Kingdom chose to stay in the bloc, according to the Central Bank of England. The economic output lost after the referendum costs £ 800 million a week, or £ 4,7 million per hour.
The economic consequences have accrued, although there have not yet been any structural changes in the UK. trade relations with EU countries or with the rest of the world.
Britain continues to sell goods and services in the European Union, its largest trading partner, while politicians work to negotiate divorce. It is easy for British companies to hire EU workers and maintain supply chains that cross national borders.
However, for almost three years there was no clarity about the conditions of future trade in the UK, making it difficult for companies to plan their future. Investments were delayed or canceled, and many companies instead put millions into planning for the worst case scenario: an outrageous Brexit. As the British policy is in disarray, there is still a risk that the country will leave the European Union without a transitional trade defense deal. The British Central Bank said the effects of this scenario would be worse than the 2008 financial crisis.
Brexit's Big Delay
The United Kingdom was the fastest growing economy in the G7, when the voters went to Extraordinary Actions by the British Central Bank helped the UK economy escape the recession that some predicted after the vote in favor of Brexit and unemployment remained very low. G7 ranking. Economic growth has fallen from an annual rate of about 2% to less than 1
British companies' investments halted after the referendum and then fell by 3.7% in 2018. At the same time, the rest of the G7 rose about 6% a year after the vote. And business confidence in the UK has collapsed to the lowest level of almost a decade.
"The reason for this inefficiency with regard to the rest of the world is, I think, uncertainty about the prospect of Brexit," said Gerdjan Vlige, a member of the Bank of England's Monetary Policy Committee, in a speech last month. households. The pound fell 15% against the dollar after the vote in 2016, raising the price of imported goods. This has prompted inflation and contributed to reducing the value of people's salaries.
The executives responded to the uncertainty by trying to protect their business.
"It is clear that political inactivity has already had economic repercussions, with many firms hitting obstacles to investment and recruitment decisions as a result of continuing uncertainty," said Adam Marshall, General Director of the British Chamber of Commerce, Business Lobby. 19659014] Brexit chaos means that business looks down the gap ” data-src-mini=”//cdn.cnn.com/cnnnext/dam/assets/190312160018-01-brexit-economy-0306-small-169.jpg” data-src-xsmall=”//cdn.cnn.com/cnnnext/dam/assets/190312160018-01-brexit-economy-0306-medium-plus-169.jpg” data-src-small=”http://cdn.cnn.com/cnnnext/dam/assets/190312160018-01-brexit-economy-0306-large-169.jpg” data-src-medium=”//cdn.cnn.com/cnnnext/dam/assets/190312160018-01-brexit-economy-0306-exlarge-169.jpg” data-src-large=”//cdn.cnn.com/cnnnext/dam/assets/190312160018-01-brexit-economy-0306-super-169.jpg” data-src-full16x9=”//cdn.cnn.com/cnnnext/dam/assets/190312160018-01-brexit-economy-0306-full-169.jpg” data-src-mini1x1=”//cdn.cnn.com/cnnnext/dam/assets/190312160018-01-brexit-economy-0306-small-11.jpg” data-demand-load=”not-loaded” data-eq-pts=”mini: 0, xsmall: 221, small: 308, medium: 461, large: 781″ src=”data:image/gif;base64,R0lGODlhEAAJAJEAAAAAAP///////wAAACH5BAEAAAIALAAAAAAQAAkAAAIKlI+py+0Po5yUFQA7″/>