UK Economy Slumps Into Stagnation As Brexit Uncertainty Hits Demand

Brexit is only on its way, with many UK citizens now doubting whether this was even a good idea after all, and Britain is starting to experience economic stagnation already now. Many industries report that January was a particularly tough month for them, while afterward, the level of sales and revenues continues to decrease. This is seen mostly in the service sector for now, with many companies being forced to fire employees and optimize their processes. However, the continuation of stagnation is expected further, and the rest of the sectors and industries fear they will feel the changes next.

Many business owners state that there is no other reason for this decrease than the Brexit uncertainty. The country’s industries generally function as before, and the people have not become poorer during the last several months. It is the undefined political and economic situation that scares away the investors and the clients alike. If the government was a little bit more transparent about processes and perspectives, perhaps the citizens and also foreign investors felt safer about spending their money. Instead, the average citizens start to buy products beforehand, as if expecting a war blockade.

Meanwhile, Europe also starts to feel the decrease in the economy, and generally also because of the Brexit uncertainties and insecurities. It is reported that France and Italy show particularly weak results, especially in the private sector growth. Ireland also suffers a certain slowdown, and even Australia reports the echo of the European stagnation process reaching it.

Many people are worried whether their jobs are safe and whether they will be able to keep them during the next year at least. Many companies seem to be aware that the downfall in the economy has not been caused by any objective factors or reasons, like a real lack of resources or demand. Instead, the country suffers economic stagnation because of political difficulties. So many industry representatives demand a clear and transparent position of the government on the Brexit issue.

A comprehensive prognosis would stop the worries, and the country would have been better prepared to face real difficulties after Brexit – if any at all. But for now, the country suffers real consequences of the situation that has not even happened yet. Perhaps, in reality, the economy will face no considerable changes, and so the worries have no sound reasons.

UK Economy Slumps Into Stagnation As Brexit Uncertainty Hits Demand

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