Pay growth in Britain has dropped substantially, saddling a pressure of no-deal Brexit. Striking unemployment rates of a 43-year low, the Britain economy is not able to render resilient growth in the workers’ pay. Feeble growing chance of no-deal Brexit has augmented the rate of inflation leading to a diminution in living standards. For the first time, Britain has experienced a rise in petrol prices due to increase in inflation this year along with a consumer price index striking an annual rate of 2.5% up till last July.
Regardless of some fragments of strength in the economy, weakness persists to continue after the increase in rates by the Bank of England after the financial crisis. The crashing-out of the EU without a deal with Brussels have prepared the public to adjust in the new era of higher borrowing costs for consumers and businesses.
Commenting on the same, former member of the Bank’s rate-setting monetary committee Andrew Sentence, told in a statement that amplified talks of no-deal Brexit would limit business investments whereas higher inflation would fortify the spending power of consumers, as stated in The Guardian.
He added, “Though GDP growth picked up in the second quarter of this year, it would be premature to conclude that the Brexit-induced slowdown in the UK economy is coming to an end.”
According to the Prime Minister Theresa May, no-deal Brexit wouldn’t be the end of the world. She said, “Look at what the director general of the World Trade Organisation has said about the no-deal situation that it will not be a walk in the park, but it wouldn’t be the end of the world. What the government is doing is putting in place the preparation such that if we are in that situation, we can make a success of it, just as we can make a success of a good deal.”