Thanks to the weaker status of the pound manufacturing has reached a two-year high! As Britain gears up to leave the European Union it appears the weaker pound has boosted overseas demand for British goods. Export order books are at levels last seen in December 2013. This demand is particularly high in the pharmaceutical and mechanical engineering sectors.
Project fear has left some in great worry that leaving the EU will be disastrous for British trade but the alternative is what could very well be the reality. As the EU becomes more centralized and controlling we have seen rising prices in agriculture and manufacturing by an average of ten percent. The prices of a variety of items could be seen to drop due to more freedom of trades deals from BMWâs to Brie.
Britain was once a nation that traded freely across the globe and Brexit is allowing for the UK to join the current global market as a free trading nation being able to buy goods at the cheaper world prices while selling their goods without extensive taxing. Trading barriers will no longer create a wedge between Britain and the world prices that havenât been accessible for many years.
If we take for example French Farming, when they sell a meat or dairy product to the UK, the tax stamp added for EU trade increases the price of the item leaving the buyer out of pocket. The UK can now stand on its own two feet and help their own farmers who may be struggling while simultaneously protecting the rural environments. Prices are believed to fall by eight percent.
The economy is believed to boost by at least four per cent and a huge seventy per cent of UK trade takes place outside of the EU. (Especially in services such as law, advertising and education.) It appears Manufacturing and global trade will go hand in hand for an economy boost and we can be hopeful this will increase across the next two years and beyond.