Two months have passed since the referendum vote to leave the European Union. There was a lot of fear that an economic crisis is on the way of the public voted to leave. Although economic indicators are showing levels of fast improvement.
For instance, the month before the referendum vote airline reservations to the UK were down compared to last year. After the vote, they have improved by 4.3 percent- and richer tourists have purchased more jewellery and watches.
Other parts of the economy have not suffered as most have though it would. Confidence of consumers and domestic purchases are going up. “Retail sales smashed expectations in August”, as it was noted by the daily Mail on 26 of August. Home-sales and manufacturing reports are well and good.
Britain has, of course, not left the EU yet and certain experts indicate there is a huge possibility that it will not happen. As the government has “taken a bite out of more than they can chew”. As noted by some experts that “separating a connection that has lasted for more than 40 years is not that easy”.
Britain has its own advantages. It has a huge market and the EU is one of the biggest trade partners it has. Severing such ties and imposing a “we are free to do what we want attitude” will only constitute as economic and political “suicide”.
For instance, if Germany were to stop doing business with the UK, both sides would suffer enormous losses.
But what about migration? It is true that severing itself from the EU the pool of skilled workers from the UK (including a cheap labour force) would be diminished immensely. As doing “simple jobs is not attractive to the British youth”. However, the international scandal that would follow if the UK were to tell its migrant inhabitants to leave will not happen. The backlash from the international community would be hard to get back from.
However, no one is stopping the UK from creating new types of visas to attract this wide pool of skilled workers and businessmen if there was a need to do so.
While London does remain the most affluent area in terms of the number of millionaires, earning and sky-high property prices (although the latter is seeing a drastic drop in prices), Scotland is enjoying itself with one of the biggest boost to household wealth over the period, Barclays said.
Behind London the other most prosperous areas of the country include the South East, Eastern England and South West of England.
In terms of the health of the country’s small to medium sized businesses, Manchester, Cardiff and Sheffield saw some of the strongest turnover growth over the period, rising 15 per cent, 12 per cent and 11 per cent respectively, Barclays said.
Askshaya Bhargava, of Barclays, said: ‘It is very encouraging to see the upward trajectory for prosperity in the UK continuing despite recent global volatility.’
Mr Bhargava said: ‘The research shows that not only is the UK still “open for business”, it sends a clear message that all parts of the UK are sharing in, and contributing to its role as a driver of global prosperity.’
In a bid to stimulate the economy, the Bank of England has cut UK interest rates from 0.5 per cent to 0.25 per cent. While this could spell welcome news for mortgage-holders, hard-pressed savers are look set to continue feeling the squeeze.
In conclusion, the economy is steadily bouncing back and for now (if not forever) the UK is part of the EU whether it likes it or not. As the new London Mayor keeps saying “London is open for business”, I would rephrase to Britain is still open for business”.