Beyond Currency

29 November 2022 - Brexit is a threat to UK productivity and output


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There are growing fears that the UK political system is rapidly becoming outdated and unfit for purpose. The Conservative Party have been in power for more than a decade despite a catalogue of missteps, the largest of all being their ownership of the Brexit debate.
In the lead up to the vote on the UK’s membership of the European Union, both sides of the argument, with the opposition powerless to intercede due mainly to their failure to agree a policy on the subject. Once the decision to leave was taken, they seem to have gravitated towards the remain cause, simply because it hampers Government decision-making.
There has been very little movement on the Government's pledge that the country would seek game changing trade deals with several nations, including the U.S. and China. Yesterday, Rishi Sunak spoke of his commitment to building on the UK’s reputation in several growing areas and highlighted the country’s success in developing the Coronavirus vaccine.
However, he also admitted that the golden age of the relationship with China has ended, and any deals will need to be done on a purely commercial basis. The country has failed to take any decisive advantage of its freedom to make deals with nations outside the EU, while its relationship with its largest trading partner has been virtually consigned to the dustbin.
Sunak can bemoan the number of crises that have occurred since Brexit, but the fact is that the Government rushed into leaving without laying the groundwork for its departure first.
Beyond Currency Market Commentary:
Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.
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