With growth of 0.2% in the first quarter of 2017 the UK economy ranked last out of the 28 Countries who are part of the EU as the Brexit vote takes its toll.
Experts are predicting that growth in the UK throughout 2017 will remain poor and will be even weaker in 2018.
The main contributing factor is high levels of inflation caused by the fall in the value of the pound after the announcement of the referendum result. This fall has led to imported goods becoming comparatively more expensive, the cost of which has been passed on to consumers. Wage rises are not keeping pace with this inflation causing many consumers to reduce spending.
The problems are likely to be compounded by today’s shock result in the General Election which once again caused a fall in the value of the pound.
Some analysts are predicting however that the results of the election could actually help the economy long term as the Tories no longer have a strong mandate in support of their planned ‘hard Brexit’.
Is poor growth in the UK economy, the weak pound and the recent economic uncertainty having a negative impact on your business? If so then it is important to seek professional advice at an early stage in order to consider the range of options available to you. One of our experienced practitioners would be more than happy to arrange a meeting, initially free of charge. To take advantage of our service, please contact us.