Eurozone growth ‘losing momentum’ as Britain rebounds
With businesses fretting over political uncertainties, including the potential impact of Britain’s exit from the European Union, economic growth in the 19-country eurozone has lost some momentum, a closely watched survey found yesterday.
However, a survey of British businesses provided further evidence that they have put the initial shock of the Brexit vote behind them, thanks partly to the plunge in the pound. The drop in the currency, which this week hit to a 31-year low against the dollar, makes British exports more competitive.
What both the eurozone and Britain have in common is the outlook remains clouded by what happens next regarding Brexit.
British Prime Minister Theresa May confirmed over the weekend that she will invoke by March the so-called Article 50 of the EU treaty, the mechanism by which two years of talks on Britain’s exit officially commence.
Beyond that, it’s all very unclear, especially what Britain’s trading relationship with the remaining 27 EU countries will be like.