UK Still Trying to Get a Deal, as Economy Weakens Further
Skerdian Meta • 1 min read
The UK economy has been heavily affected by Brexit which has hurt the investor and business confidence considerably. Several sectors of the economy have fallen in contraction and today the service sector also fell in contraction, as services PMI indicator fell below 50 points.
If Brexit ends up with UK not getting a deal, then the economy will deteriorate much more. So, despite Boris Johnson’s comments that the UK will leave at the end of this month, he would prefer to get a deal. UK Brexit Secretary Barclay just reaffirmed that a while ago. Here are some of the comments:
- We’re focused on getting a deal
- These are serious proposals (Boris’s submitted plan from yesterday)
- A deal is the best way forward
- Need to negotiate with the EU on taking these proposals forward
- If there was no deal, checks would have to be put in place by the government
- Delay to Brexit might require the consent of all EU members
Besides headwinds from Brexit, the UK is also getting headwinds from the weakness in the global economy, as a result of the trade tariffs. The Scotch Whisky Association just commented saying that Scotland will be affected heavily by US tariffs on Whisky. Below are their comments:
- US tariffs set to hit Scotland hard
- Single malt scotch whisky represents over half of the total value of UK products on US Gov’t tariff list
- Tariffs will have negative impact on investment and job creation in Scotland
- EU and US should take urgent action to de-escalate the trade disputes
So, the UK is in the middle of different cross fires, some inflicted on itself, some by others. Things seem to be heading in the negative direction, which means that the economy is expected to deteriorate further.