Brexit decisions have dire consequences
I WAS puzzled by your correspondent Mr Stafford’s comments on the economics of Brexit so far (WM letters, July 2).
He claims that growth has doubled. By this I presume he means growth in GDP. I simply don’t recognise the “doubling of growth” he claims. I will concede that we didn’t witness the collapse predicted by the Treasury. However, we did see mitigating policies being introduced through massive quantitative easing, low interest rates and the devaluation of sterling. This of course has had an effect on inflation and consumer confidence.
At the time of the referendum UK growth was around 2%, the highest in the G7. It is now of course way below that and we are bottom of the growth league. The day before the referendum we were the sixthlargest economy in the world. The day after the referendum, in just 24 hours, we had become the seventh.
The bad news just keeps on coming, of course, with the recent 50% cut in automotive investment. This won’t be the last if we see a hard Brexit.
As far as the trade figures quoted, of course, crucial to any increase has been the devaluation of sterling, a double-edged sword as it affects inflation.
In addition the crucial thing is, what is the base line? I also don’t recognise some of the figures.
In addition, as I’ve stated many times in this column, the “nature” of the trade is vital. This is why Airbus and BMW are concerned as the trade takes place within their supply chain.
Decisions have consequences. In economics there is no such thing as a free meal. Dr Robert Morgan Efail Isaf, Pontypridd