Photo: Stefan Wermuth / Reuters
The British may face financial difficulties due to excessive confidence in the UK economy after Brexit. About it writes Bloomberg.
“Economic indicators are at a higher level than expected and may detract from the imbalance in the UK economy, as well as from the fact that it is not effective in an international context”, — said the Agency.
The stability of the labor market allowed the British “to borrow less and postpone”. The high level of credit debt makes a country’s inhabitants more vulnerable in the event of rising interest rates or rising unemployment.
The UK authorities have warned that even a gradual increase in interest rates “can have a detrimental impact on consumers with high debt.”
The most pessimistic forecasts on the economy of the Kingdom after the decision on withdrawal from the EU did not come true. In particular, unemployment close to the lowest level since 1970-ies. But economic growth in the UK is low compared to other G7 countries, and does not show such a positive trend, as other countries of the bloc, writes Bloomberg.
In a referendum in 2016 in the order of 51.9% voted in favor of a British exit from the European Union. The official Kingdom’s exit from the EU is scheduled for March 29, 2019.
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