09-11-2019, 04:25 AM
Quote:The Centre for European Reform, the Bank of England and others have estimated that by late 2018 the economy had already suffered lost growth of over 2 per cent compared to how it would have performed. Given the further slowdown in the economy since, the figure now is likely to be nearer 3 per cent. In other words we would have been some 3 per cent richer as a nation, more innovative and more competitive. Why? Because the main hit has indeed been to investment, which is essential for innovation and growth.
Although we have record low unemployment, this is largely because firms have done the cautious, prudent thing. In the middle of the huge economic and political uncertainty that the planned departure from the EU has created, they have adopted the strategy of meeting whatever demand there is by hiring more workers, who are relatively cheap (and can be fired if need be), instead of investing as they otherwise would have done in plants, machinery, operations and systems. Want to see the economic damage already done by Brexit? Look to lost business investment | Prospect Magazine