EU Referendum

One Year After EU Referendum Britons Face High Price, Lower Wage

One year of a long journey of Brexit has been completed since EU referendum and it is time to examine the economic consequences during the period.

The United Kingdom economy has grown at the rate of 1.8 percent in past three quarters and unemployment has fallen from 4.9 percent to 4.6 percent.

The best part of Brexit so far is that there has been no economic disaster.

However, prices of goods and services have gone high, business investment made no contribution during the period, net exports detracted and household consumption accounted for more than 4/5 of economy expansion.

Regular wages increased by just 1.7 percent while the rise in prices was seen at an annual rate of 2.9 percent during the one year period.

The savings rate has fallen to the lowest level in more than half the century in the country and consumption growth is not sustainable. The incomes have been falling too in past one year.

The credit in the UK is in huge supply, but uncertainty is unable to prevent the households borrowing and spending.

Forecasting errors have also been seen on the Leave side and economists predict there will be no drop in sterling in near future. The recent data of inflation points to 1.5 percent while the average earnings growth is 3.5 percent.

Meanwhile, many believe the withdrawal of UK from EU will damage Britain and make the assets less valuable.

Apart from all these, it is yet to understand what will be the outcome of Brexit negotiations between UK and EU.