It has been 2 years since the U.K.’s decision to exit the European Union, now the Brexit hasn’t been on the headlines for as much but how U.K. economy currently doing?
Just before the release of a referendum last June in which many analysts and economists have come up with negative forecasts. But fir the past year, those negative forecasts were proven wrong. The confidence of consumers did not dampen by much but rather business has gone on just as before.
In fact, even after the Brexit, the British economy has experienced a growth in the last 3 months in the year of the decision to exit the union; this was according to the latest official estimate.
According to the Office for National Statistics (ONS), The gross domestic product (GDP) was up by 0.7% a 1 percent increase for its original level.
The sudden increase of GDP of the in the country’s economy is mainly caused by the manufacturing industry and its improvement during crucial times.
There were signals that the uncertainty that the Brexit brought is hitting confidence. The ONS have stated that there would be a sluggish business investment, which fell by 1% compared with the three months to the end of September.
Although the British economy has performed well even after the decision to leave the Union, the country’s economy did not get away unscathed.
The British pound dramatically dropped after the Brexit, and since then it has been trading by 15% lower compared to the dollar and is 12% lower compared to the euro that it was before the referendum.
The FTSE 100 has risen by 16% since the eve of the referendum, which is mainly caused by the pound’s decline, because big companies are often international and is calculated and stocks are traded in dollar.
With regards to the country’s interest rates, the Bank of England took steps to boost the economy. Rates are less likely to go up any time soon with the current situation of the pound.