After having left the European Union to end the month of January, it appears that new certainty in the future of Britain will help boost re-investing, per Bloomberg. With the leave officially completed and new agreements begin to be worked out, confidence in the British economy has boomed. Boris Johnson wishes to do the same as private corporations, and also invest more into the country, with money that may have been used to help support the EU in the past. With British companies soon to reinvest profits into growing both in the UK and the EU, this will only help further demonstrate the positive aspects of why the UK has decided to leave.
Do you believe that company and consumer confidence will be enough to maintain a positive post-Brexit UK, or will the full ramifications of Brexit hurt these investments in the long run without EU membership?
5 comments:
I think that the attempt to increase investment and help boost the economy can have a short term impact on potentially boosting growth and moral in the economy, especially from the producer end, but at the consumer end there is still angst towards Brexit, and there will be greater uncertainty in trade without EU membership. It is uncertain this early on to determine how the post Brexit U.K will prosper and to what degree this was a good or bad decision.
In my opinion, I believe that the U.K. will receive some short-term economic benefits from the increase in consumer confidence. This increase in consumer confidence is likely to boost economic investment and growth in the short-term, but in the long term Britain is likely to see some negative economic ramifications. These negative ramifications are likely to be caused by uncertainty regarding the future of Britain’s international trade.
I think that Brexit will overall hurt Great Britain but they will never admit it. It's going to take awhi8le for them to recreate the relationships they previously had with other countries. I think that they will eventually be successful but for now they have a lot of hurdles to get over.
Short-term effects were what the Brexit movement in the UK were banking on; this will continue to support the public opinion that they were correct. However, the UK now needs to maintain trade relationships with countries that they recently gave the cold shoulder to, and will likely become more US-oriented than EU-oriented in terms of allies in the coming decades. I am ultimately surprised that their separation is going decently well, but it is way to early to call anything, and consumer confidence is fairly subjective to speculate. Generally, people will support anything that looks good without batting an eye.
The UK I believe in the long run will see negative effects from leaving the EU. Company and consumer confidence is very fluid. It is not enough to maintain a positive post-Brexit UK. I am interested to see how Britain heals and maintains foreign relationships for trade purposes in the future. Those relationships will have a large influence on the success of this more independent UK.
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