Could a ‘Brexit bounce’ really rescue the UK’s struggling economy?
Brexit Explained: Companies have reportedly held back billions of pounds since the 2016 referendum, but until a trade deal is struck low investment is likely to continue
Stockpiling has resulted in some extra economic activity ahead of Brexit as companies produce or import more in order to ensure that they are ready for anticipated disruption.
But clearly this is a short-term boost that cannot continue after Britain leaves the EU. It will likely result in a corresponding dip after the eventual departure date as companies slow down production while they run down the stocks they’ve built up.
Some have suggested that this will result in a mini-recession as the UK’s already slow rate of economic growth tips into a decline.
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