Brexit Moves UK to the Bottom of the Table for the Businesses

Britain and Germany were the fastest growing economies in the G7 in 2016, but since then until now Britain has fallen to the bottom of the table, the Financial Times report of 2017 shows.

The fall indicates that at the moment UK has the slowest economic growth of the G7 – the Group of Seven countries, which have 7 largest advanced economies in the world, which are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. As a result, it creates a loss for business in the UK.

The economists, politicians against Brexit and those affected claim that the fall is related to the UK’s decision to leave the UK. Anti-Brexit party (Renew) principal, Sandra Khadhouri, said: ‘because of the market uncertainty, UK has moved from being the fastest growing economy in the G7 to the lowest’.

The pound fell dramatically straight away once the Brexit vote was announced last year, and since then has been trading around 15% lower compared to the dollar and 12% lower compared to the euro than it was before the referendum.

Rates are unlikely to go up anytime soon, shows Global Counsel Report 2015, where official statistics also show that the number of Europeans coming to the UK is dropping ahead of Brexit as well. It causes the labor problems for businesses and makes people think ahead – will they be forced to relocate in order to access European Union labor without restrictions? Will other firms go out of business? What is going to happen next?

A businessman from Scotland, Ben Cooper, said that Brexit already affects him in many ways – he now feels not only separated from his friends in Europe and Europeans who live here but also faces issues within his business. ‘Brexit affects me in many ways, from the big shifts in exchange rates to the big problems that leaving the CU will cause’, said Ben Cooper.

He builds bicycles – imports them, modifies them and exports them. ‘This week my business shipped to customers in Singapore, Germany, Switzerland, the USA and the UK. Because of Brexit, it will be harder and more expensive in the future. The UK is turning into a xenophobic backwater…’, said Ben Cooper.

He also added that he watched it with horror as the xenophobic attacks have increased in the south of the border and he had to explain it to EU suppliers and customers, saying that Scotland is different than Britain, as it does not have the same views as the majority in England and there was no rise in xenophobic attacks here.

Renew Party’s Principal, Sandra Khadhouri, also said that she feels sure that many businesses will relocate when UK leaves – ‘This will mean a loss of jobs and prestige for the country. People in industry and businesses continue to warn of the impact of new tariffs and restrictions on the movement of people if we leave the single market. Leaving EU also means leaving EU agencies and a range of cooperation mechanisms in so many areas – disease prevention, security cooperation, food hygiene, transport safety, medicine regulation, etc.’, explained Sandra Khadhouri.

‘As a party, we are dealing with what comes next – which is fixing Britain, addressing inequalities and creating a new society and economic model that brings along everyone but is also open to the future, free markets, innovation, and cooperation’.

‘We have been receiving amazing support from people, who are fed up and disappointed with current political problems in our society. They are disappointed by the battles over Brexit and the Government’s contradictory approach and lack of consultation. People are now more aware that leaving the EU is a bad idea for everyone’, summarized Sandra Khadhouri.

Professional services firm EY said that the UK is expected to have lost 10,500 finance jobs by day one of Brexit. It said that almost a third of firms and businesses had already confirmed moves to the continent.

 

Berta Balsyte

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