14 Aug As the UK enters recession: “The elephant in the UK economy that will push it even deeper into an economic hole is Brexit”
Following the news of the UK’s plunge into an economic recession for the first time in 11 years, FMG CEO Devadas elaborates on the lockdown and Brexit’s roles in the country’s deepest recession yet:
“The lockdown, as with other economies such as Singapore which adopted even more aggressive measures, was certainly a major driving force behind the outlier negative performance of the UK amongst the G7 countries.
However, the elephant in the UK economy that will push it even deeper into an economic hole is Brexit. The UK is caught between two stools. First, leaving the EU, a process still unwinding creates uncertainty but also a growing loss of access to established continental markets.
Second, it has not yet compensated for this with a dense and mature set of trading partnerships promised under the ‘Global Britain’ banner.
The nett of this is that the UK will continue to be the outlier negative performer but also that it will the outlier slowest performer in any eventual recovery.”