affects of The end of March, forthcoming Brexit the UK economy. As the office for National statistics (ONS) announced to put the gross domestic product (GDP) in the last year by only 1.4 percent, and was so weak as since 2012.
2017, the UK economy grew by 1.8 per cent, and in 2018 increased the growth figures, at least until the summer. In the fourth quarter, from October to December, therefore, climbed up the GDP but only 0.2 percent compared to the previous quarter. Finally, in December, GDP fell compared to November by 0.4 percent.
The ONS statisticians registered a decline in business activity in all areas: in the production of key industrial such as in the Auto and steel industries, as well as in the construction industry and in the service sector. The investments of companies decreased in the fourth quarter in a row, most recently to 1.4 percent. In addition, households gifts, yet in their consumption behavior, almost unconcerned, in the last quarter of only 0.4 percent. Similar to bad it looked last during the financial crisis.
“The fog of Brexits makes for uncertainty”
Already in the last week, the Bank of England had lowered its growth forecast for the current year – also because of the uncertainties in the light of the EU exit of the UK. Now, the Central bankers only expect to receive an increase of 1.2 per cent in November to 1.7 per cent.
The British economy is not prepared for a disorderly exit the EU in the country, warned the Central Bank chief Mark Carney last week. “Although many companies have stepped up their emergency planning, is not prepared for the economy as a Whole continues to be a seamless Brexit without agreement.” The “fog of Brexits” concern for uncertainty.
If it comes to a regulated outlet, or to a so-called Brexit a few weeks before the planned date is still unclear. Most recently, the EU had called on the British Prime Minister, Theresa May, to find a compromise with opposition leader Jeremy Corbyn and thus to secure a majority in Parliament for the negotiated Brexit Deal. Recent proposals for compromise of the Labour leaders had to beat the head of government, however.