the Plans of Britain’s Finance Minister Sajid Javid to raise economic growth to an average post-war level of almost 3% per year “completely unrealistic”, said the chief economist at the National Institute of economic and social research (NIESR) Arno Hantsche. About it reports Bloomberg.
Javid wants to improve productivity and increase the growth rate to 2.7% to 2.8% per year. However, the report NIESR says that such acceleration would be difficult.
“We have considered the impact of the proposed policy and believe that it is unlikely to provide a seismic impulse performance or compensate for the impact of Brexit,” said Hancke reporters in London.
the Growth of the UK economy will likely grow by 1.3% this year and 1.6% in 2021, predicts retail sales.
the Uncertainty associated with the negotiations on the trade deal with the European Union after Brexit, darkening growth prospects. The Prime Minister of great Britain, Boris Johnson insists that the transitional period after the country’s withdrawal from the EU is due to expire December 31, 2020, regardless of whether he will be able to negotiate a trade with the bloc until that time. This means that you can strike the trade at the end of the year.
the Bank of England assesses the prospects for GDP growth are even more pessimistic. According to estimates of the Central Bank, in 2020 the UK economy will grow by 0.8%, the weakest rate since the financial crisis. In 2021 the growth is expected to accelerate to 1.5%.
the Government has already announced that it wants to increase public investment by 20 billion pounds (26 billion USD) per year. However, this is insufficient to offset the negative consequences of Brexit, which, according to estimates by NIESR, the UK economy will be 3-4% less in the long run than if she had stayed in the EU.
the Increasing productivity is a key factor for long-term growth prospects and prosperity of the economy.
Forachievement goals Javid productivity in the regions would have to increase by more than 3% per year, which is higher than the productivity observed in the economy as a whole since 2007.