THE DAMAGE INFLICTED BY BREXIT ON BUSINESS INVESTMENT IN THE UK

Brexit-related uncertainties have weighed heavily on investment decisions by UK-based firms. Fears the United Kingdom was heading for a no-deal Brexit on 31 October, question marks over an extension and its length (until today) , over the transition period (if there is a divorce agreement) and its length and over the nature of the trade agreement that will govern exchanges between the United Kingdom and European Union after an eventual transition period, these are factors that have held back business investment. Weak investment is as much a drag on growth in the short term as on the growth outlook for the long term. UK- based firms need greater visibility as a matter of urgency. However, it is doubtful this will be the case for quite some time (amongst the publications dealing with this issue see Brexit watch: We might avoid the NDB#1… but what NDB#2? ) . This means that business investment, and in turn growth, will be lastingly stifled.