United Kingdom to avoid post-Brexit feared downturn

The United Kingdom to avoid post-Brexit feared downturn

The United Kingdom’s GDP increases five decimals three months after EU’s exit referendum, with the service sector leading this growth.

The British economy seems to be dodging the negative effects that were foreseen after Brexit and it has registered a GDP growth of up to 0.5% in the third quarter of 2016: two decimals less than in previous quarter (0.7%) but two more than predicted (only a 0.3%).

Besides, the service sector has increased up to 0.8% with transportation, storage, and communications (films, TV and music industry) as the leading markets in this growth.

In the industry, the automobile giant, Nissan, has announced to maintain its factory in Sunderland, assuring 7.000 jobs. In this sense, the UK’s unemployment rate has been located this trimester in the 4.9%, and consumer and spending rates have been maintained.

These figures show that the negative provisions launched from all sides (political, economic and social) after this last 23rd of June’s referendum, were too pessimistic and that Brexit’s impact has not been, at least, as immediate as expected.

The United Kingdom’s economy links 15 growing trimesters in a row; an increase due to the steady population’s spending and consumption levels and to the service sector’s strength.

On the other hand, the International Monetary Fund foresees that the United Kingdom will be the first growing economy of G-7’s belonging countries and a 1.8% increase has been calculated for late 2016.

This British economy’s strength places the country in a good position to face the next negotiations on the exit from the European Union with Brussels and to withstand the long-term Brexit effects.

At Del Canto Chambers we are committed to the promotion of Spanish and British relations in the trade, political and social fields through our campaign #embracespain. We can be contacted at clerk@delcantochambers.com

Del Canto Chambers’ Editorial Board

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