Kristian Rouz — The UK’s GDP growth rate is gradually gaining momentum amid decades-low unemployment, a resurgence in manufacturing, and recent improvements in the country’s foreign trade. This comes despite the uncertainty swirling around Brexit, and a persistent threat of investment flight still marring Britain’s economic outlook. CC0 Brexit: UK, EU Reportedly Reach Consensus on Backstop Review Clause According to a report from the Office for National Statistics (ONS), the British economy rose 0.6 percent quarter-on-quarter in the July-September period. Officials said stronger consumer demand was the main factor behind this acceleration. These latest GDO growth figures are also the strongest since 4Q16 when the British economy expanded 0.7 percent quarter-on-quarter. The ONS, however, observe an increased number of British businesses have put their investment plans on hold due to Brexit-related risks. The cabinet of Prime Minister Theresa May has yet to reach a comprehensive divorce agreement with the EU — or abandon such plans altogether, opting for a ‘no deal’ Brexit. READ MORE: Brexit, Trade War, Oil Prices: Not Good News for the Global Economy — Scholar Either way would be a better option than the lingering months-long uncertainty, analysts say, as many businesses have prepared contingency plans for a ‘no deal Brexit’ — potentially allowing them to weather the storm. NIESR experts say the British economy will likely slow to 0.4 percent in the last quarter of this year, as the Brexit standoff is expected to escalate — weighing on the UK’s domestic investment. © REUTERS / Toby Melville EU Won’t Bully Us With Economic Embargo Threats, Brexit Sec Confirms No Deal Preparation For its part, the ONS observed an improvement in household consumption, driven by the solid labour market and rising wages. Household spending… [Read full story]
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