UK economic data released today is expected to confirm preliminary estimates that show inflation rose to 0.7% in April and
UK economic data released today is expected to confirm preliminary estimates that show inflation rose to 0.7% in April and by 2.2% compared to a year ago.
Data continues to show that the UK economy is doing relatively well despite the ongoing political chaos stemming from Brexit challenges. Britain’s economic growth appears to be stemming from falling debt, record-high employment and growing wages. However, the economy also had an added boost from firms stockpiling raw materials and products ahead of Britain’s departure from the EU, which had been scheduled for April 12.
However, while today’s numbers may show that the economy survived yet another Brexit setback, other indicators point to potential pain to come. The pound nosedived after cross-party talks fell apart in late April and weak support for the Conservative Party has analysts worried of further division.
As Britain’s economic growth continues to be overshadowed by Brexit risks, today’s numbers will not assuage fears of a potential future downturn due to political instability. Currently, the economic effects of Brexit are merely based on expectations of what might happen; the real impact on the economy will be felt after Brexit actually happens, and particularly if there is no deal.
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