Brexit bad for the economy? Britain is roaring ahead of the US and Europe


Blackleaf
#1
"Brexit would be devastating for the UK economy", the Remainers kept telling us during the referendum which they evantually lost.

Yet the British economy is still suffering no devastating effects from Brexit. In fact, it's roaring ahead of the US and Europe...

Let's not do ourselves down - Britain is roaring ahead of the US and Europe




Allister Heath
29 July 2016
The Telegraph


There's a tendency to bemoan our own economic shortcomings while turning a blind eye to the errors of others Credit: Jason Lee/Reuters


Britain has always excelled at self-flagellation. Our economy certainly has many faults, and it is a sign of national self-confidence that we are so keen to discuss endlessly how to address them. But we are not the only ones to face immense challenges, and it is a bizarre legacy of the declinist 1970s that so many people in the UK are so willing to believe that other economies are doing better than our own.

Take the recent false narrative that the eurozone was undergoing a rebirth, fuelled in part by a temporary growth spike in the first quarter. The most recent second-quarter GDP figures shows it expanded by just 0.3pc in the second quarter, against 0.6pc for the UK.

France didnít grow at all, in a major blow. We donít know for sure about Germany yet, but GDP probably grew by 0.3-0.4pc

As to Italy, it probably expanded by a pathetic 0.1pc: for all the recent false dawns in that country, it remains the case that Italy is mired in permanent stagnation. It has for all intents and purposes not grown at all since it adopted the euro, a decision which will in time be remembered as one of the most disastrous it has ever taken.

Spain, which has released its figures, is the only partial exception to this appalling picture: its economy has also slowed, albeit to a still strong 0.7pc.


Booming: Despite Brexit, Britain's economy is still outperforming US and Europe

On the one hand, the European Commissionís shameless, hypocritical decision to simply ignore the fact that Spain and Portugal remain in breach of the stability and growth pactís 3pc budget deficit limit is welcome: at least the Eurocrats, who are facing an existential crisis, realise that there is no sense in further angering European electorates in the aftermath of the Brexit.

On the other, it is clear that the old idea that the euro, for all its flaws, would at least serve as some sort of disciplinary mechanism for wayward states is now entirely obsolete. The system is breaking down on all sides. True, there was progress of another kind in the eurozone: unemployment fell again.

But the average rate of 10.1pc in June remains horrendously elevated (and more than twice the UKís 4.9pc). There also remains plenty of divergence fuelled by a one-size-fits all currency zone, with the jobless rate ranging from an excellent 4.0pc in Malta to a catastrophic, inhumane 23.3pc in Greece.

Itís not just about our European neighbours.

There is an equally false view that the United States must be doing better than us. Yet it too only grew by 0.3pc (or 1.2pc in the annualised terms that Americans usually refer to) while its first quarter growth was slashed to 0.2pc (0.8pc annualised).

This isnít some daft jingoistic appeal to economic nationalism. I have spent my entire career as a commentator analysing the many, many faults in Britainís economic model and prescribing remedies. I could write not just a column but a long book about them.

But the fact that so many people continue to express surprise each time we outperform other rich economies shows that we still have an unfortunate tendency to do ourselves down. Why are these same people not berating the US and eurozone authorities? Why are they so obsessed with portraying our recent vote for self-government as economically disastrous, while turning a blind eye to the genuine economic blunders in so many other countries?

The reality is that we did pretty well in the second quarter, confounding all of those who said that the pre-referendum nervousness and the incessant drumbeat of Project Fear would hurt the economy. It may not last in the third quarter Ė the self-fulfilling doom of too many of our business leaders may see to that Ė but until now our performance has been creditable.

The second quarter slowdown in the US and the eurozone should also remind us that there are plenty of macroeconomic reasons why big companies could be doing badly, entirely irrespective of any Brexit-inspired jitters.

Yet we can be sure that it will all be blamed on Brexit, now the mother of all excuses.


allister.heath@telegraph.co.uk

Let's not do ourselves down - Britain is roaring ahead of the US and Europe

UK exports grow faster than global rivals for first time since 2006 as businesses target non-EU markets

The UKís exports have grown at a world-beating pace for the first time in nearly a decade, according to official figures, as businesses rapidly increased the share of goods they sold outside of the European Union.

The success of British firms in repositioning to markets further afield has helped boost overall export growth above the global rate of expansion for the first time since 2006, according to the Office for National Statistics (ONS).

The UKís success came at a fraught moment for global trade as a whole, as world export growth fell behind overall economic growth for the first time in 14 years. The figures suggested that the country's exporters were already moving towards non-EU markets ahead of this year's EU referendum result.

While Britain has sold slightly more goods outside of the EU than within it for the last four years, the share of exports heading out of the customs union increased sharply in 2015. UK businesses sold £151bn of goods to countries beyond the EU last year, compared with just £134bn purchased by EU members.



UK exports grow faster than global rivals for first time since 2006 as businesses target non-EU markets
 
Curious Cdn
Conservative
-2
#2
More horsh1t from the UK.
 
Blackleaf
#3
 
Walter
+1
#4  Top Rated Post
Quote: Originally Posted by Curious Cdn View Post

More horsh1t from the UK.

Facts make lefties cringe.
 
Blackleaf
#5
Quote: Originally Posted by Walter View Post

Facts make lefties cringe.

Not only have they and almost the entire Earth Establishment been soundly defeated in the EU referendum but their dire economic warnings over Brexit are also being proven to be the scaremongering bollocks 17.4 million of those who voted thought they were.
 
Danbones
Free Thinker
#6
"Worst economy since 2009"...or... "Brirtain roaring ahead"
which is it?
http://forums.canadiancontent.net/in...omy-worst.html

Well, I suppose you could be totally tanking and still be kicking the economic butt claimed in the OP: since those other economies are at a roaring standstill...
 
Blackleaf
#7
EU exports are a mere 12% of British economy: Trade figures show focus on Europe has steadily dropped in past five years



Exports to the European Union now account for just 12 per cent of Britain's economy - £222.4billion - and companies are looking elsewhere for trade.
 
mentalfloss
-1
#8
Quote: Originally Posted by Danbones View Post

"Worst economy since 2009"...or... "Brirtain roaring ahead"
which is it?
http://forums.canadiancontent.net/in...omy-worst.html

Well, I suppose you could be totally tanking and still be kicking the economic butt claimed in the OP: since those other economies are at a roaring standstill...

Who needs facts, when you're a raging leftie (like Blackleaf and Walter)
 
Blackleaf
#9
Quote: Originally Posted by mentalfloss View Post

Who needs facts, when you're a raging leftie (like Blackleaf and Walter)

I've posted a lot of facts.
 
Danbones
Free Thinker
#10
If you want market share, I'd go with the Opium to China thing
( The TIM HORTONS model)
a HUGE Successful, captive depressed target consumers, double incomes/ one kids....
highly addictive product/substance
low cost/ high profit ( buy low, sell HIGH, LOL)
well, you know...
It ain't like it hasn't been done before..and before... and before...

that fails, weapons and strife are attractive exports

That said:
I'm not calling into doubt the OP, so mach as pointing out that it will be a while till we see the real economy...
The reporting as in all things modern, is just nose leading by so and so at this time

BTW, OMG! the EU bank fails that are pending....quite possibly this was all arranged for that reason only - britain being a banking capitol...would be the financial haven for those in the know...
Last edited by Danbones; Jul 30th, 2016 at 07:25 AM..