The British economy which recently announced last month that their exit from the European union might be completed this March.
Britain’s decision which was met with negative forecasts from economists and analysts regarding a decline in the country’s economy after it leaves the EU has shown signs of strength in the past months in the midst of the process and the completion of the Brexit vote has not led to a sluggish progress in Britain’s economy.
United Kingdom’s economy rose 0,6% during the last quarter of 2016 which was beyond analysts forecasts as the economy only grew by 2% prior to the fourth quarter lower than the previous year’s 2.2% growth. It was also then when the Consumer Price Index inflation went up by 1.6% at a two and a half year high.
Since then, economists have grown increasingly confident that the Brexit would not be the main threat to the economy’s growth and has broken most of the market fears of a potential economic depression.
Among the signs of a renewed economic hope for the United Kingdom includes new forecasts of a 2% growth this year compared to the considerable 1.8 growth last year. Despite the positive outlook, economists did warn that this was due to the lack of major news since the referendum last June and can still be affected by any event for the next two years.
According to the head of Confederation of British Industry head Paul Drechsler, the government is close to venturing into a series of negotiations any day now.
British Prime Minister Theresa May, meanwhile, stated that she is ready to push through with the British exit without a deal should the EU negotiators demand too much.
Should the economy face a sudden disturbance, finance minister Philip Hammond stated that they have prepared a budget and that he was given enough spending power should the economy wean at the slightest sign. He also added that they are confident that they have made enough preparations to see the British exit throughout the duration of the negotiations.
British Tech Sector Grows Further
Despite signs of growing supermarket and retail prices in the UK, the technology sector has been growing at a rate higher than anticipated and was described by British PM Theresa May as a “great British Success story”.
While others have seen the industry to be growing at a rate faster than the British economy, the sector has been also able to expand to London with 72% of venture capital and private equity investment going to regional businesses last year.
According to reports, the sector which has reached £9.2 billion last 2016 is continually receiving more investments and was one of the major drivers of growth for the economy of Britain.
The sector which is growing twice the expected rate now contributes almost £97 billion per year which is 30% higher in the last five years recorded. The sector’s employment rate has also risen across the United Kingdom with the number of employment and job opportunities growing on a quarterly basis.
According to May, the sector will be the government’s focus after the end of the British exit with plans to expand the digital tech industry’s extent from 5G to artificial intelligence.
No-Brexit Deal Threats
Last week, Prime Minister Theresa May released a statement that she will take the United Kingdom out of the European Union without a trade deal should European Union negotiators demand too much stating that no deal is better than a bad deal.
On Monday, British manufacturers urged May to take the threat back which might endanger Britain’s trade because of trade barriers without the presence of a trade deal. Without a trade deal, any trade activity between the UK and the EU would be going against the rules and tariffs of the World Trade Organization,
May who wishes to prioritize immigration control under the negotiations has explained that Britain would have to cancel its membership from the European Union’s single market if they are to take control of the immigration.
Although the manufacturing sector accounts for around 10% of the economy, other sectors are also wary of any effects that a negotiation without a trade deal would result into.