Despite warnings of economic doom and gloom during the run-up to the referendum on 23rd June, 2016, the British economy is projected for positive long term economic growth post-Brexit, according to economists at Price Water House Coopers (PwC). Moreover, the British economy is projected to be one of the world's fastest growing developed economies over the next thirty years.
Contrary to George Osborne's predictions
The report refutes George Osborne's scaremongering tactics during the remain referendum campaign, which predicted that the United Kingdom would enter a recession post-Brexit.
Although the UK has yet to technically leave the European Union, the report is good news for Theresa May and her government. In the report published Tuesday, the firm ranked 32 countries by their projected global GDP in terms of the Purchasing Power Parity (PPP)-the UK ranked ninth. PPP is used by economists to decipher economic growth and standards of living. Combined, the 32 countries ranked possess 85 per cent of the world's GDP.
The report predicts that the UK's economy will grow faster than some of Europe's largest powerhouses such as France and Germany. The report suggests the cause of this is the consequence of a 'favourable demographic and a flexible economy that will be able to react faster to circumstance'.
Brexit economic impact between now and 2020
The report suggests that the main impact of Brexit will transpire between now and 2020. After 2020, the report predicts that the markets will no longer be volatile after Britain has left the EU.
'In 2020, UK growth is predicted to settle down and revert to its long-term trend as determined by the population growth, investment and technological progress.
However, this is dependent on the United Kingdom remaining open to talented individuals from across the globe,' according to the report. To conclude, the report suggests forging trade deals with fast growing economies outside the European Union to offset probable weaker trade deals with the EU following Brexit'.
