According to an ex-senior strategist for the Bank of England, Brexit has cornered Britain’s economy in “no man’s land,” and the nation could experience the slowest growth since World War II in this incoming decade.
Andrew Sentence who is currently a member of the country’s Monetary Policy Committee (MPC) said Britain’s economy “will be limping on for some time; at least up to the time when talks on Brexit will come to an end.” The UK will remain in this “limbo-land” until the late 2020s, in the words of the Andrew.
Observers are raising these red flags at a time when Guardian’s Brexit dashboard indicated remarkable expansion in the economy when 2019 kicked off, triggered by a spectacular rise in reposition ahead of the original date for Brexit (29 March), which has been delayed until October.
It all started with the sterling dropping compared to foreign currencies throughout the previous month. And now, market analysts fear that the UK’s exit plan has changed from a time-bound procedure into a long, drawn-out feature of Britain’s economy as lengthy negotiations slow growth in the coming years.
The Guardian monitors 8 indicators on a monthly basis to gauge the impact of Brexit. The pound is also in the spotlight, as well as the progress of FTSE 100.
Of all the 7 pointers predicted by economic experts, 3 cases turned out worse than anticipated. Other 3 performed better than expected, whereas 1 ended up as foreseen by economists.
And what we’ve seen of late is mixed up the economy amid the incumbent stalemate about exiting the European Union. Arguments even turned red at the beginning of April terming Brexit an all-out national crisis.
Businesses have slowed down as firms are not receiving new orders to supersede completed projects because companies are still reluctant; all eyes fixed on Brexit discussions to see if something fruitful comes up. The only group benefiting are manufacturers who are reaping from stockpiling more than any G7 economy in history, contrarily contributing to higher GDP growth amid the discomfort.
The bottom line
Economists are worried the rush to prepare for a disruptive no-deal case could slow down economic growth in coming days when companies run-down their supplies. Hopefully, Brexit talks will get better, or The UK economy will keep limping on as market experts have predicted.
Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the cheapest merchant services U.K has helped thousands of business owners save money and time.