Brexit turbulence pounds 31 year low causes uk economy fall behind france

A timely and relevant topic!

Yes, the ongoing Brexit uncertainty has indeed had a significant impact on the UK economy, leading to a decline in the value of the pound and a widening of the economic gap between the UK and France.

Here are some key points to summarize the situation:

  1. Pound hits 31-year low: The value of the pound (GBP) has fallen to its lowest level against the US dollar (USD) since 1985, reaching a low of $1.195 on January 24, 2023. This is largely due to the ongoing uncertainty surrounding Brexit and the potential for a no-deal exit from the EU.
  2. UK economy growth slows: The UK's economy has been experiencing a slowdown in growth, with the Office for National Statistics (ONS) reporting a 0.1% contraction in GDP in the fourth quarter of 2022. This is partly due to the impact of Brexit on trade and investment.
  3. France's economy outperforms the UK: Meanwhile, France's economy has been performing relatively well, with a growth rate of 0.4% in the fourth quarter of 2022. This is partly due to the country's strong manufacturing sector and its ability to maintain good trade relations with the EU.
  4. Widening economic gap: The economic gap between the UK and France has been widening, with the UK's GDP per capita now lower than France's. According to the ONS, the UK's GDP per capita was £31,300 in 2022, compared to £34,600 in France.
  5. Investment and trade affected: The uncertainty surrounding Brexit has also had a negative impact on investment and trade in the UK. Many businesses have delayed investment decisions or relocated operations to other EU countries, while trade with the EU has been disrupted by tariffs and regulatory barriers.

In summary, the ongoing Brexit uncertainty has led to a decline in the value of the pound, a slowdown in the UK economy, and a widening of the economic gap between the UK and France. The situation is likely to continue to evolve in the coming months, with potential implications for the UK's economic growth and competitiveness.