“In the long run a lack of business investment could damage productivity and reduce economic growth.”
With the leave date approaching, there is still no certainty about Brexit, even with Boris Johnson’s “do or die” promise of quitting the EU. According to the Economist “uncertainty about Brexit has already hampered investment in Britain”. While the economic situation has not been as averse as the scenarios predicted over time, the UK economy is not doing very well either. Investment has taken a hit only increasing 10% from 2007 while that of other G-7 increased by north of 25%. The currency too has taken a hit and has been fluctuating. Britain’s labour productivity has experienced its biggest contraction since 2014. The Letwin amendment and the Benn Act have legally obliged Prime Minister to ask for an extension and exclude the no-deal scenario. Such an extension is likely to happen once more but it will come with yet more cost: the continued rise in economic disruption, intense political conflict and increasing frustration of the average citizen. Is anyone paying attention to this Brexit balance sheet and its long-term implications? If you want to read more, please go to the followings links on The Economist.
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