UK Economy Grows After Brexit

Surprisingly and against all forecasts from renowned economists and experts, the UK economy continues to grow in the third quarter of 2016. This is after the equally unexpected Brexit vote. Brexit was colloquial name given to Britain wanting to leave the European Union. It was voted in favor in the referendum of June 2016.

Though the economy did slow down a little bit. Experts thought it would grow somewhere between 0.2% and 0.3% through the periods of July to September, however it grew an astonishing 2.3%.

What saved the UK economy?

Some decisions made by the central bank, such as cutting interest rates and promoting trading through diverse means, have helped the UK to not spiral into recession. However, some economists believe the UK to be in some kind of sweet spot, where they haven’t felt the repercussions yet.

Although the economy has grown, some industries haven’t. For instance, construction and manufacturing had the biggest setback, declining 1.4% and 1% respectively.

One thing is certain. Customers have helped business growth by spending lots of money due to their currency falling, as tourists have spent their money more freely.

In spite of the UK economy growing, economists expect it to suffer heavily in 2017 after Article 50 has been triggered due to many commercial and trading uncertainties. The article is the means by which the UK will leave the European Union.

One step ahead, the British government has already revealed some of its plans to counter Brexit. They have also stated that talks with the European Union members will occur shortly before March 2017, when they intend to trigger the article.

Sadly for commerce, the EU members have already stated that unless Britain accepts free movement, they won’t accept free commerce in their borders. Meaning, businesses won’t be able to do any business in the region as freely as they have done so until now.