The wrecking power of Brexit
The manufactured goods industry would be the sector hardest hit by any no-deal Brexit. In fact, such an outcome would see the gross value of the segment slide by 12% over the next 15 years, according to new analyses carried out by Statista.
It wouldn’t be good news for agriculture and foods either. That sector would likely have to deal with the highest tariff impositions, amounting to almost 20%. The result? The gross value of the industry would decrease by 11% over the coming 15 years.
And services? That would be 8% down over the same period.
Even before a possible no-deal, things are looking bleak. UK economic growth pretty much came to a halt last month, while the Bank of England forecasts that the quarterly growth rate will slide to a mere 0.2% for the three months to end-June.
Automotive isn’t faring particularly well either. British car dealers have reported a 4.6% year-on-year fall in sales for May. UK car production slumped -44.5% in April with 57,000 fewer vehicles built in what the Society of Motor Manufacturers and Traders termed “an extraordinary month”.
Mike Hawes, SMMT chief executive, says the latest numbers “are evidence of the vast cost and upheaval Brexit uncertainty has already wrought on UK automotive manufacturing businesses and workers. … This is why no-deal must be taken off the table immediately and permanently, so industry can get back to the business of delivering for the economy and keeping the UK at the forefront of the global technology race.”