The Current Economic Situation in the United Kingdom

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of the University of Birmingham

“Dire predictions about the economy in the aftermath of the Brexit referendum result do not seem to have been fulfilled. Reasons for this include the actions taken by the Bank of England, the depreciation of the currency and resilient consumer behaviour”  

Hide

Dire predictions about the economy in the aftermath of the Brexit referendum result do not seem to have been fulfilled. Reasons for this include the actions taken by the Bank of England, the depreciation of the currency and resilient consumer behaviour. In addition, the quick replacement of David Cameron by Theresa May reduced the political uncertainty of the result.

But this does not mean we can be sanguine about the prospects for the economy over the next few years. It is difficult to escape the conclusion that the long-term consequences of Brexit will be harmful, and the anticipation of this will affect economic agents’ decisions now. Even if the UK reaches a free trade deal with the EU, this is far inferior to the current situation, since trading with the EU will require customs inspections and rules of origin documentation, which means a non-negligible increase in the cost of trading. The reduction in trade is likely to reduce productivity, and hence living standards. 

We would also expect a decline in investment, including foreign direct investment, and sluggish consumption, due in part to the effect of the depreciation on consumers’ disposable incomes. The effect of the depreciation on exports will help to some extent; however, there will be little scope for either monetary policy or fiscal policy to do much to offset the effects of any economic downturn. In particular, tax revenues are unlikely to be buoyant, and we can expect several more years of austerity. Things will not be pleasant over the next two or three years. 

Have your say...

Feedback
  • sanim  maharjan
    External
    1. At 8:34AM on 14 January 2018, sanim maharjan wrote

    I also wants to study in UK

  • https://https://193.168.195.169.com
    External
    2. At 8:08AM on 28 December 2021, wrote

    health insurance should only be taken from reputable companies, you really don’t want to get it from fly-by-night companies;;

  • MODULO DI RICHIESTA DEL VISTO PER L'AMERICA
    External
    3. At 6:42AM on 03 January 2022, wrote

    But yeah Many thanks for taking the time to discuss this, I feel strongly about it and really like learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with more information? It is extremely helpful for me.

  • ruay vip
    External
    4. At 7:36AM on 04 January 2022, wrote

    Necessary to send you a little note to help Thanks much again on the magnificent views that you have discussed at this time. It really is incredibly generous easily give you what exactly most people would have made as an e-book to get some bucks for themselves, especially considering that you could possibly have attempted in the event where you want. Similarly, the guidelines served to become a fantastic way to know that most people have identical to mine the same desire to learn much when considering this matter. I believe that thousands more fun times in the future for the people who look at your blog.

  • pussy
    External
    5. At 10:29AM on 05 January 2022, wrote

    I really love the way you discuss this kind of topic.~;.`”

  • nclex practice test
    External
    6. At 6:36AM on 06 January 2022, wrote

    It is really a nice and useful piece of info. I’m glad that you shared this helpful info with us. Please stay us up to date like this. Thank you for sharing.

  • skindex
    External
    7. At 1:37PM on 06 January 2022, wrote

    I would say that this is a a great post of a great person, i'm pleased to see this.

  • family lawyer
    External
    8. At 12:27PM on 08 January 2022, wrote

    Our Boyd Law Los Angeles wills and trusts lawyers will not rest until your ... To arrange a will, a trust, or other estate planning tool to protect one's

  • sign up for an email account
    External
    9. At 12:59PM on 08 January 2022, wrote

    Excellent post. I was reviewing this blog continuously, and I am impressed! Extremely helpful information especially this page. Thank you and good luck.

  • യുഎസ് വിസ ഓൺലൈൻ അപേക്ഷ
    External
    10. At 11:44AM on 10 January 2022, wrote

    you can always tell the quality of USB cables by looking at the thickness of the cable. thicker usb cables have higher quality;;

  • pg slot เครดิตฟรี
    External
    11. At 12:10PM on 15 January 2022, wrote

    Nice post. I learn something more challenging on distinct blogs everyday. It will always be stimulating to read content off their writers and practice a little something from their store. I’d choose to use some with all the content in my small weblog whether you do not mind. Natually I’ll provide a link on your own internet weblog. Many thanks sharing.

  • breakout sessions
    External
    12. At 11:59AM on 16 March 2022, wrote

    Have you considered about putting some social bookmarking buttons to these blog posts. At least for twitter.

Add Your Feedback