Matthew Lynn Matthew Lynn

Brexit is already changing the British economy – for the better

The government has lost its majority. The constitution has fallen apart. The country no longer has any idea whether it is leaving the European Union or not. Historians and political commentators are queuing up to tell us this is the lowest point in the country’s history since the Suez Crisis/Civil War/Dissolution of the Monasteries (delete as applicable).

And yet, amid all this chaos and confusion, something else is happening. The economy, slightly surprisingly, is purring along quite smoothly. The explanation? In truth, the EU doesn’t make much difference to the economy anymore. And insofar as it does, leaving is a marginal improvement.

The City expected the economic data released this week to make grim reading. Global trade is slowing, with central banks in the US and the eurozone cutting rates to try and stave off recession. Add in a slowdown in investment as companies understandably fret about our potentially chaotic departure from the EU and the British economy should be slowing down sharply.

Matthew Lynn
Written by
Matthew Lynn
Matthew Lynn is a financial columnist and author of ‘Bust: Greece, The Euro and The Sovereign Debt Crisis’ and ‘The Long Depression: The Slump of 2008 to 2031’

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