The strength of the British economy is being hiked in order to convince the public that Brexit is simply the answer to our future prosperity. It might prove to be the case, yet it is not a certainty. The worldwide economy is going through a phase where the future is becoming hard to foretell and experts are going through a time where their assessments and predications seem no longer to be relied upon. No one seems able to decipher which direction the future economy is likely to take and what will be the consequences.
The Eurozone is suddenly showing signs of an economic resurgence as Germany and France are experiencing an economic boost driving the Eurozone to grow at its fastest pace in almost six years, while UK companies appear to have lost some pace. Strong demand pushed up business output across all of the major Eurozone economies, according to IHS Markit’s Purchasing Managers Index (PMI). The composite index, covering all private industrial sectors, rose to 56 for February, the highest level in 17 months. Any score above 50 indicates the economy is expanding and this relatively high number is consistent with first quarter GDP growth of 0.6 per cent.
By contrast, the UK’s dominant services sector slowed down, dragging the PMI for the wider economy to 53.8, a sharp fall from 55.4 in January, and the weakest number since August 2016. This suggests that the economy will grow by 0.4 per cent in the first three months of the year, slowing from 0.7 percent in the final quarter of 2016. Europe’s other large economies, Germany and France, are on track to grow by 0.6 per cent over the same period, while Spain is expanding at 0.7 per cent.
The Chancellor should gear his expected budget having the growth of the economy as his target, otherwise, if the trend is to lag behind the current resurgence of the Eurozone, then all this talk by the Brexit right-wing brigade of the Tory Party will prove to be a dangerous political manoeuvre likely to cause us more harm in the long term.
Theresa May should listen to reason and not make the cardinal mistake of antagonizing Europe by adopting the high ground tactic of confrontation as opposed to an honourable way, which will benefit Britain as well as keep Europe a closer friend to do business with and share many of the common ideals which bind us together.