What’s next for the UK? Now that it’s left the EU there are big questions about how the move will affect its financial future. That includes questions about whether or not it can achieve business growth.
It’s important to note that England business growth has been higher than expected since Brexit. In fact, Nissan has promised to make new investments for the automaker’s Sunderland plant. Before the vote last June many economists projected that the country would fall into recession.
However, the figures from Q3 2016 showed that the country’s GDP grew by 0.5% from the months of July to September. Those numbers are actually lower than the 0l7% growth that was recorded from April to June before the vote. That was Q2 2016. However, figures from Q3 were still higher than many experts had projected.
Another important issue to note is that the expanded all happened in the services sector. The growth was 0.8%. Other sectors shrank. That includes agriculture, construction, and manufacturing. In terms of business growth, it shows that the UK’s economy isn’t balanced. It’s definitely a key issue to consider.
It’s interesting that there was also a big boost to growth thanks to film and production. It implies that Britain is benefiting from the growing popularity of video streaming services. Chancellor Philip Hammond said that the news was positive. He claimed that it shows that the UK economy is strong as it starts the Brexit negotiations.
On the other hand, other economists have made less positive statements about the UK’s business growth. They’ve warned that the UK’s growth will slow down more in 2017. Another big factor is that higher inflation will also have an effect on wages.
Nissan also announced that it plans to make big investments in its Sunderland plant. It guarantees 7,000 new jobs and reduces concerns that production of the vehicles would be transferred to France.
UK Prime Minister Theresa May has stated that Nissan’s announcement shows that the company has confidence in the UK. On the other hand, British ministers haven’t shared details about what the government had offered Nissan. Still, various automakers have asked the UK for guarantees that they won’t be damaged from the Brexit vote as a result of lower business growth.
The Labor party has warned the UK government about making deals that aren’t transparent. It has argued the Conservative government should be more transparent and give a complete plan for Brexit. The UK’s business secretary hasn’t made any statement about what was pledged to Nissan.
It was only stated that tariffs were an issue. It was stated that the UK wants to keep the sector competitive.
Meanwhile, the president of the European parliament has stated that the UK would be welcomed back if it voted to return to the block. The EU also stated that a court case wouldn’t be needed either. It’s an interesting situation because it could affect business growth.
In fact, the EU said it would be “happy” if the UK returned to the European Union. The EU has also warned that the Brexit deal would end if the rights of EU citizens in England weren’t protected.