A Better British Story
Despite all of the doom and gloom over the United Kingdom's impending withdrawal from the European Union, key manufacturing indicators are at their highest levels in four years, and the mood for investment may be improving. While parts of the UK are certainly weakening economically, others may finally be overcoming longstanding challenges.
LONDON – Nowadays, there are hazards to looking for signs of hope in the British economy. As the latest OECD forecast for 2018 and beyond shows, a cloud of gloom has descended on the United Kingdom.
The primary source of pessimism is, of course, Brexit, and the fear that withdrawing from the European Union will hurt British consumers through higher import prices and weak business investment. And, making matters worse, the British government’s independent Office of Budget Responsibility has now lowered its expectations for economic growth, owing to persistently weak productivity performance in the UK.
Against this economic backdrop, British politics are in a state of chaos, with Prime Minister Theresa May seemingly presiding over an increasingly weak government. At this point, the only thing stopping a Conservative Party putsch against May is the fear of losing a fresh election, which would bring a far-left government to power for the first time in many years.