Are we too pessimistic about Brexit and the country’s economy?


Is Brexit really as big of a risk as some would like us to think? Or are we making it out to be something worse than it actually is? City A.M asked to of the country’s most knowledgeable economists. Let’s see what they think.

Gerard Lyons, co-chair at Economists for Brexit, says YES.

According to Lyons, the country’s biggest challenge is fighting the constant need to talk about circumstances as a downturn. Internationally, people are constantly being spoonfed negative comments from Britain’s economists and politicians, not even considering the fact that they were wrong before the referendum.

“Despite this, many global firms are seeing through this, and with sterling cheap, are choosing to invest here. They are right to do so. Brexit is a great opportunity to reposition the UK, driven by a free trade agenda and a bespoke UK-EU deal.”

This doesn’t mean that if the economy experiences a slowdown next year, Brexit isn’t automatically bad for us. The reality is far from it. Considering we’ve experienced seven years of growth, it’s fairly normal for the UK to experience some stagnation. A temporary rise in inflation in the new year may squeeze the spending power, leading to a slowdown in growth. But only for a short while.

And President-elect, Donald Trump, and his fiscal boost and central banks’ polices should give another helping hand to “reflate the world economy.”

UK growth may resemble a Nike swoosh, as the further ahead one projects, the better our economy’s prospects appear.”

Nina Skero, managing economist at the Centre for Economics and Business Research, says NO.

While data recently pointed towards a stable picture of the country’s economy, a shift might not be too far off.

“October inflation data showed input prices increasing at the fastest rate on record. As businesses pass higher costs onto consumers, we expect inflation to stand around 2.4 per cent in 2017-18 – more than three times its 2016 level. Combined with modest earnings growth, this will squeeze household spending power.”

Focusing on business, the medium-term outlook doesn’t appear to be heaps better. Whilst business investment grew in the third quarter, firms may become more cautious in the near future with their spending.

“Although there are reasons for cautious optimism, such as the weak pound which may discourage importing (though it won’t necessarily boost the UK’s largely price-inelastic exports), the short-term risks are certainly on the downside, with most potential post-Brexit benefits such as reduced regulation years away.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

Are we too pessimistic about Brexit and the country’s economy?

Are we too pessimistic about Brexit and the country’s economy?


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.