How Brexit Is Affecting the UK’s Economy

With Brexit occurring in recent weeks, the UK economy has seen a bounce back after months of economic uncertainty, according to The Guardian. And while there has been growth, it may take longer than expected for a complete financial recovery. “The fact that the pound rose on the currency markets after news that the UK recorded no growth at all in the last few months of 2019 tells its own story. The economy performed badly – but not quite as badly as some had feared,” according to the publication.


In 2019, the British economy grew by 1.4%, according to the publication, which was up from 1.3% the year prior. Notably, “the figures for GDP per head of population showed an even weaker picture, a 0.1% decline in the fourth quarter and a modest 0.8% increase for the year,” according to The Guardian.

Meanwhile, the election of Prime Minister Boris Johnson is said to have improved the thinking around business opportunities in the country going forward. “One factor is the improvement in business sentiment since the election. Surveys have suggested that some of the investment that had been on hold has now been sanctioned. The ‘phase one’ trade deal agreed upon between Washington and Beijing has removed the threat of intensifying protectionism,” according to the publication.

Reuters, however, painted a less rosy picture of the country’s economy in the months leading up to Brexit, although it did state that the United Kingdom will see a boost in the coming year. “Britain’s economy flat-lined in the final three months of 2019, when the country was in a deadlock over Brexit that was only broken by Prime Minister Boris Johnson’s December election victory, leading to some signs of a recovery early this year,” as noted by Reuters.

“This is a mucky figure with the true sense of the UK economy’s performance occluded by the election of December 12,” said Jeremy Thomson-Cook, chief economist at payments provider Equals Group, in an interview with the news service.

Interestingly, it does appear that people are spending more money, which will prove to be a boon for the nation’s economic state as 2020 progresses. “The data also showed quarterly growth in household spending – which has helped drive Britain’s economy for most of the period since the 2016 Brexit referendum – was the slowest in four years, rising by just 0.1%,” according to Reuters.