Ashton Whiteley - Brexit Vote Affects All Areas of UK Economy

Ashton Whiteley dubs UK's economic growth weakest of Group of Seven nations in 2017 as immigration and tourism suffer.

In terms of overall growth, the UK’s economy was the weakest in the Group of Seven advanced nations last year. Ashton Whiteley economists believe there are many ways in which the Brexit referendum and Britain’s decision to leave the European Union has left its mark on the country.

Official data showed that migration of EU citizens to the UK dropped by almost 50 percent in the 12 months leading to September.

While immigration was a strong reason for the UK voting to leave the EU, Ashton Whiteley analysts are concerned that the UK may become a less appealing destination for the skilled workers the country needs to attract, especially in the construction, healthcare, and engineering sectors.

Search engine data indicates that the number of searches conducted in European countries seeking employment in the UK has reached a record low.

The Bank of England anticipates an upswing in business investment this year but Ashton Whiteley analysts say Britain has always lagged behind its peers in this regard and this has been worsened by the Brexit vote.

UK consumers have felt the pressure caused by higher inflation due to a sharp devaluation of the British pound following the referendum on EU membership in June 2016. This pressure has exacerbated a ten-year long increase in levels of personal debt. Weak wage growth has also added to the financial pressure felt by consumers.

While tourism has largely benefited from the Brexit vote with the drop in the value of the pound, increasing the appeal of Britain for foreign tourists and encouraging UK citizens to remain at home during holiday periods, the growth in foreign visitors fell to a 12 month low in September last year.

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Source: Ashton Whiteley