Senior economist warns UK economy will limp for a decade
A senior economist at the Bank of England (BoE) has warned that the British economy will remain relatively weak compared to its prosperous post-World War II period in the upcoming 10 years, blaming the condition on the uncertainty over the country’s withdrawal from the European Union.
Andrew Sentence, a senior BoE policymaker, said on Monday that Brexit had caused UK economy to be trapped in “no-man’s land”.
“The UK economy will be limping on for a while, until Brexit negotiations are fully resolved,” Sentence told the Guardian newspaper, adding, “I can see the UK being in this limbo-land for quite a while – certainly until the late 2020s.”
More than half of Britons voted to leave the EU in a tight referendum in June 2016. The decision has proved politically divisive while economists warn the divorce from the EU will have long-term impacts on Britain’s economic growth. They have also warned that a failure to leave the EU on time, which has now become the case after two delays in March and April, is causing more economic damage to Britain.
Having extended Brexit negotiations until the end of October, the British government is now seeking to secure a controversial deal in the parliament which could prevent a disorderly exit from the EU, a scenario which the BoE says will cost Britain nearly a tenth of its gross domestic product.
Major international companies have already moved their assets out of Britain in anticipation of a no-deal divorce between the country and the EU.
Experts believe Brexit will also cause London to lose its position as a major international hub for financial services.
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