Is the British economy stalling due to Brexit?

Following the vote to leave the European Union, there are signs that the British economy is slowing down.

According to analysis in The Guardian by Richard Partington, in the first six months of 2017, the British economy grew by 1%. While this may appear positive, it compares to an average growth of 2.5% in the years leading up to the EU referendum.

The pound has fallen to its lowest level for eight years and is currently worth €1.09 euros, down from €1.31 before the referendum. This means that imported goods are now more expensive to buy.

Inflation has risen to 2.6% in July 2017, which affects the cost of living. Earning rose by an average of 2.1%, which equates to a 0.5% drop in income in real terms. This has slowed down consumer spending, but has caused many people to look at increasing their savings.

Not all is doom and gloom. Unemployment has fallen, and many manufacturers and others who sell goods to Europe are becoming more competitive as their goods are now cheaper to buy among people outside of Britain. Economists forecast that by the end of the year, the economy could show signs of recovering and inflation may come close to its peak.

High inflation and low interest rates mean leave many people looking to find ways to invest money to enable wealth to grow above the level of inflation. Financial Advisors help people in the Wirral area create sound investment strategies.

Investments – The value of units can fall as well as rise, and you may not get back all your original investment