Kathimerini.gr (Greece):
Source of uncertainty, but not destruction, Brexit
6 October 2017
Article by NICHOLAS BLOOM*, PAUL MIZEN
The conditions in the British economy worsened after the Brexit referendum, but there was no disaster predicted by various economists. Growth rates in Britain have fallen, and today they are down to around 0.5% compared to Europe and the US. However, the economy did not collapse and the disaster did not occur. Today's conditions in Britain are attributed to four factors, according to a survey of 2,500 businesses in the UK. First, British companies exporting to the EU have benefited from the 20% drop in sterling, as exports to the single European market have become more attractive. As long as access to the EU is maintained, export firms will benefit from weakening sterling. Second, demand for exports is boosted in the Eurozone due to the improvement of the economic landscape during the current year. Growth in the Eurozone is now homogeneous, with the European South recovering dynamically. Thirdly, monetary policy remains relaxed, with the base interest rate standing at the historical low of 0.25%. Fourth, half of the voters are optimistic about Britain's course.