Ostrum
  • News & Chronicles
  • France
  • Euro Area
  • United States
  • International
  • Politics & Society
  • Monetary Policy
  • Media
  • Decoding
  • About Philippe Waechter
Philippe Waechter's blog
  • Insights
  • About us
  • Expertise
  • Our people
  • Media

Philippe Waechter's blog
My french blog
  • News & Chronicles
  • France
  • Euro Area
  • United States
  • International
  • Politics & Society
  • Monetary Policy
  • Media
  • Decoding
  • About Philippe Waechter
  • News & Chronicles
  • Climate
  • France
  • Euro Area
  • United States
  • International
  • Politics & Society
  • Monetary Policy
  • Media
  • Decoding
Philippe Waechter's blog
Prévôté
Previous Next
  • 2 min

British economy falls behind since referendum

  • 14 August 2017
  • Philippe Waechter
Total
0
Shares
0
0
0

The comparison of industrial activity in the European economy is very instructive when we consider the period after the British referendum on Brexit.
Despite the acceleration of world trade, British industrial production is lagging behind the various countries of the Eurozone. This is shown in the graph below.
The profile of industrial activity in Italy flies across all the major European countries, while the United Kingdom is clearly lagging behind, especially since the beginning of 2017. The gap is significant with the index of the euro zone as well as with France, Germany and Spain.

Europe-june2017-ipiafterrefonBrexit
The observation is similar when looking at manufacturing output. The British have stopped working since March, while other European countries continue to make progress (Italy no longer produces an index of manufacturing output).
Europe-june2017-mpiafterrefonBrexit
The economy of the United Kingdom, therefore, does not benefit frankly from the resumption of world trade and the fall of its currency. This is what the graph below suggests. The United Kingdom’s non-oil exports are not doing better than world trade, despite a fall in the currency. The euro zone, on the other hand, is one of the sources of the acceleration of world trade since the end of 2016.
I was worried about how the British economy would look because of the depletion of domestic demand (see here), and I am even more concerned about this lack of rebound in the industrial production.
The British who saw the rupture with the European Union as a source of improvement for the United Kingdom competitiveness and an ability to conquer the world have not yet convinced the rest of the world of the benefits of Brexit.
uk-2017-july-effexchrate&trade

Subscribe to the newsletter

All the news from Philippe Waechter’s blog in your mailbox


Loading
ABOUT PHILIPPE WAECHTER

Le magazine d’experts d’Ostrum

ABOUT OSTRUM AM
  • About us
  • Media room
  • Our publications
  • Cookie Policy (EU)
FOLLOW ME ON
EXTERNAL LINKS
  • Economists
  • Think tank
  • Central banks
  • Blog roll
©Ostrum AM 2023
An affiliate of : Plan de travail 2

Input your search keywords and press Enter.

Manage Cookie Consent
We use cookies to optimize our website and our service.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}