Brexit economy: UK faces slowdown amid living standards squeeze

Britain’s vote to leave the EU has squeezed living standards, hit and dampened the country’s growth prospects, a Guardian analysis of economic news over the year since the referendum shows.

One year since voters narrowly opted for Brexit, the Guardian’s monthly tracker of economic news paints a gloomy picture, with households facing rising costs and firms fretting over falling demand and political uncertainty.

The economy has so far avoided the recession predicted by some doomsayers at the time of the referendum, and in the months immediately following the Brexit vote the UK outperformed most other advanced economies.

But at the turn of the year the economy slowed markedly and the UK slipped to the bottom of the European growth league. It was also left trailing behind the world’s advanced economies.

As the pound’s sharp drop since the referendum works its way through the economy into higher prices in the shops, the pressures on consumer spending threaten to keep growth in the doldrums. Now that complex Brexit talks are gettting under way, business groups are also warning of headwinds from fraught domestic and uncertainty around the UK’s future trading and immigration arrangements.
 

 

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