How to progress after Brexit.
Mustafa Asim MBA.GGA Scotland
Global Business Ambassador, Global Goodwill Ambassador for Scotland, CEO at Global Group of Companies,
With the right skills and tools, Business can flourish in any situation. The state of British economy’s post-Brexit vote bounce is losing momentum as the weak pound and higher inflation herald a squeeze in living standards, according to a recent reports.
Although official growth figures may show the economy will avoid recession in the second half of the year, the latest market analysis of the post-referendum economy shows a more mixed picture.
As we all know pond losing value, The most notable shift over the last month was a further sharp fall in the value of the pound. Against the dollar, the pound is lingering around the $1.22 mark – about 18% lower than on 23 June, the day of the referendum. Its huge setback for economy and country as whole.
At one point a “flash crash†in the currency markets pushed the pound briefly to about $1.15. It quickly recovered, but the underlying pressure on the currency has remained following. If you pick eight economic indicators, as well as the value of the pound and the performance of the FTSE, to track the economy on a monthly basis. There will be no surprise that our economy not perfuming great.
There is a sense of uncertainty among customers. The report for October shows that four of the eight categories have performed worse than expected, two were as expected, and two were better. Due to fear factor Inflation jumped more sharply than expected to 1%, the highest level in almost two years, Over all business confidence is low. Britain’s trade deficit with the rest of the world widened, as growth in imports rose faster than exports, and retail sales were flat as shoppers were put off by higher clothing and goods prices and exceptionally warm September.
Still business leaders in shock, Four months on from the Brexit vote, there are warning signs that consumers should prepare for a renewed squeeze in living standards, as the weak pound drives inflation higher and cautious businesses rein in wage growth. Most importers feeling the pinch due to pound value going down.
As banks lending to businesses growing but still small businesses feel hard to access to business loans and funding. But the figures were marred by a contraction in agriculture, construction and manufacturing that prompted business groups to urge the chancellor, to use the policy statement to support measures that boost investment and productivity to build overall confidence.
Some business sectors are showing sign of growth. The main boost to services came from transport, storage and communication, which grew at its fastest pace since the fourth quarter of 2009, rising 2.2% over the period in contrast to 0.6% in the second quarter.
As country facing housing shortage and we need more and more development in this sector. The expansion of the services sector helped to offset the steepest fall in construction since the third quarter of 2012, with a slide in new housebuilding dragging the entire building industry down 1.4% between July and September. Apart from London the property prices may remain the same for few years.
The manufacturing sector is under pressure, Manufacturing dropped by 1% in the third quarter, while production fell 0.4% and agriculture slipped by 0.7%.
The figures rule out the prospect of a technical recession – defined by two consecutive quarters of contraction – in the second half of the year that was predicted by many economists before the referendum vote.
Well after the brexit What will the new world look like now that the people have finally decided to leave the EU? Its been done now. It is very difficult to decide. There are now fifty times as many uncertainties as there are certainties in life after Brexit, so this piece is mostly about what to us seems most likely. The Centre for Retail Research is less pessimistic about what will happen than many others, but ultimately it depends on what politicians, businesses and consumers do after Brexit rather than what we forecast. The retail sector will emerge, but when?
There are some basic issues:
It was a leverage to be in Europe, European Economic Area. We will still want to keep trading with the EU, because it is 45% of our external trade (once 65%). We may join EFTA (Norway. Liechtenstein and Iceland) to have continued tariff-free access to the EU's single market via the European Economic Area (EEA), but only if they agree, but that would involve agreeing to free movement of people and most of the regulations that helped people to vote Leave. As most people want restriction on free movement of people.
There may be alternative like Bilateral Agreements with EU, rather like Switzerland. This would take some time to negotiate and would involve accepting the free movement of peoples. Wait and see?
There might be another option, A Set of UK Trade Agreements with other counties. It is (probably) most likely that a UK Government attempting to implement the referendum result would seek trade agreements with the EU and several other countries in North America and Asia to give it some access to their markets. As UKTI taking measures to adopt in new world. This would allow independent economic trade and business policies to be adopted. These would take a long time to negotiate, but countries unwilling to permit low or zero-tariff access would have to face similar restrictions entering our markets.
It was a surprise all around the world and as people trying to sense the reality, One of the things that have recently taken the world by storm is the United Kingdom exiting from the European Union; an event which has been branded as Brexit. It is good to know that never before has a country exited from the EU and due to this, many people across the globe have mixed reactions and expect different reactions. However, the major impact could land on the business world.
The business and trade all around the world trying to figure out best possible outcome. The business world is in a state of confusion since exiting from the EU by Britain came as a shock. Still there is no clear policy at this stage.
International companies and Many global businesses, especially those based in the US, expect so many ups and downs. But as of now, we are going to share with you how the Brexit impact on small business will be. Companies need to adopt and may explore new markets to sustain.
Interest Rates will provide edge to USA companies. One of the beneficiaries that many small business entrepreneurs in the U.S will enjoy is the low-interest rates that are currently offered by the Federal government. Since the federal reserve did not raise the interest rates on loans prior to the Brexit vote, this situation is expected to continue. This means that this is the right time for small business owners to go for loans from banks as well as other micro financial institutions. It may help multinational companies trading across the ocean.
As there is doom and gloom, uncertainty in business circles. If you put innovative and out of box approach you may flourish in this situation. According to business consultants as well as other business stakeholders in the market, their advice is that a strategist entrepreneur can use this Brexit vote situation to their advantage by applying for business loans that are available. However, before going for these loans it is good to stay on the look out on issues concerning global business trends.