We’ve just seen MPs in the UK back the government’s European Union bill by 498 votes to 114, a majority of 384 in favour of allowing Theresa May to start Brexit negotiations as soon as possible. A deadline of March 31st has been put in place for invoking Article 50 of the Lisbon Treaty, which means that official talks with the EU can begin.
But it seems that businesses around the UK are already feeling the effects of Brexit, even though it hasn’t actually happened yet. The annual Ipsos MORI Captains of Industry survey has just revealed that 58 per cent of business leaders think that since the referendum in June last year, the decision to exit the EU has had a negative impact on their companies.
Not only that, but 66 per cent stated that they believe their company’s business situation will be even more negative after Brexit has actually happened, with just 13 per cent saying it will have a positive impact.
CEO of Ipsos MORI Ben Page said: “However, it is not all doom and gloom. Thirty-two per cent of respondents said they think their business will start to feel the positive effects of leaving the EU in five years’ time and the number of Captains that think it will remain a negative impact reduces to 45 per cent when looking at long range forecast. Businesses are also ready to adapt in order to survive, and thrive, with 96 per cent of business leaders feeling confident that their company can adapt to the consequences of the Brexit outcome.”
While Brexit should certainly give companies pause for concern, as highlighted by this particular study, further research has just been published today (February 7th) by PwC, suggesting that despite leaving the EU the UK could remain a top ten global economy come the year 2050.
The firm’s World in 2050 report predicts that the UK will drop just one place in global economy rankings in purchasing power parity and could in fact grow faster than other EU countries like France, Germany and Italy in the long run. In fact, the report projects that the UK will be the fastest growing economy in the G7 over the period leading up to 2050, with potential average annual growth of approximately 1.9 per cent.
Chief economist John Hawksworth put this projection down to the flexible economy (at least by European standards) and favourable demographic factors. He did note, however, that it will be critical for the UK to develop successful investment and trade links with emerging economies to offset likely weaker links with the EU post-Brexit.
This may help to put your mind at ease about the near future, although it will always pay to plan ahead so now’s the time to consider scenario proofing so you can avoid any potential problems thrown your way by the exit process.
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