The news that the UK economy will likely avoid a recession is good news, but growth for the last three months of 0.1% is not much to shout about.
One of the UK economy’s problems is that it no longer the “go to” destination for foreign direct investment in Europe. For the last 4 years France has been in top spot.
The news that France has attracted a massive new gigafactory to Dunkirk, is just the latest sign that it is using Brexit, a proper industrial policy and its geography to attract a lot of foreign firms.
This really worrying for the UK because it has a terrible productivity problem, which would be much worse if it were not for foreign firms coming to the country and upping the average. Green technology being the future, the inability of the UK to attract as many high tech green firms as it did is a disaster.
Without investment, improved productivity and growth there is less for the government to tax, less money for essential services, lower wages and therefore a poorer, weaker country.
It really is that simple.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
The What is relatively simple but the How maybe no so?