With less than a year to depart from the European Union, data shows that investors are still interested in the British economy.
On June 23 of 2016, a majority of British voters that conformed the 52 percent of the electorate, voted to leave the European Union, keeping the door open for the subsequent instance in which the UK government applied the now well-known Article 50 of this association of sovereign states.
“Brexit” has been such a famous portmanteau in media that even got the accolade of being named word of the year in 2016 by the Collins Dictionary, ahead of other popular words like “Trumpism” and “Hygge”. One of the most discussed issues in global politics, and arguably the most influential event of this generation.
Despite all the buzz that the Brexit phenomenon has caused, Great Britain remains as a fiercely strong hub for international investment, according to a consulting firm called EY. The report stated that at least 7 percent of foreigners have increased their assets in the United Kingdom, with some of those participants consolidating their activities in the country ahead of the Brexit closure that will come next year.
Five things that benefit the British economy at attracting worldwide investors are:
- A consolidated and largely free market where private enterprise is in control.
- The English language and its good universities.
- A low corporate tax that will fall to 17 percent in 2020.
- A 10 percent corporate tax applied to all the profits that come from patented inventions.
While is expected for the United Kingdom to leave on March 29 of 2019, Prime Minister Theresa May acknowledges the improved management, growth in productivity and technology that foreign investment brings. All this comes in a very conflicting era where both conservative and liberal views are gaining popularity in several areas of world politics.
Just last month, more than 700,000 people marched demanding a second referendum on Brexit, in order to remain in the European Union, making it the biggest public concentration since the Iraq war protest in 2003. It’ll be extremely relevant to monitor the performance of the British economy after the day of the withdrawal comes; but for now, experts believe that the United Kingdom is strong enough to keep investors busy.
