“It is hard to look at British politics these days without worrying that this is a country in decline.” (The Economist, July 28, 2018)
As the following charts indicate, Britain’s economy has been slowing since 2015, and of course, there is a risk that the relative slowdown will eventually convert into an absolute economic decline. Recently economic growth in the United Kingdom slipped lower than Euro Area GDP growth.
There is no doubt that the poisoning of the economic mood in Britain is due to the decision taken several years ago to leave the European Union.
Investment intentions in the UK are quite depressed, Brexit uncertainty has weakened the already weak pound and increased inflation, and consumer optimism is declining even though the job market is still relatively tight.
There is simply no doubt that the looming uncertainty about what kind of a Brexit decision is reached is hurting the economy.
Recent UK Macro Indicators
