Brexit-bashers are wrong says top economist as he highlights Britain's booming while 'sick' Germany lags behind
New financial investments have led to a reassessment of the UK's economic standing
PA
Britain has been hailed for "leading the way in economic reform" by economists who argue post-Brexit prospects far more prosperous than many had anticipated.
Julian Jessop, economic fellow at the Institute for Economic Affairs (IEA), told GB News negative sentiments towards the UK's economic standing have been dispelled - and said it was Germany which has become "the sick man of Europe".
Germany has recently fallen into a technical recession after two consecutive quarters of failing economic growth, with the economist predicting it could be the only big economy to shrink in 2023.
Directly comparing the UK's record with that of the Eurozone, he added that many new deals and investments would not having been possible “if we were still tied to the EU”.
Last week, Rishi Sunak signed a major deal with Singapore which will encourage Singaporean companies to invest in the UK and vice-versa.
Prime Minister Rishi Sunak (right) during a bilateral meeting with Singapore prime minister Lee Hsien Loong during the G20 Summit in New Delhi, India
PA
EU members are also encouraging investments within the UK. French bank BNP Paribas told its clients to ditch the Eurozone in favour for investing in British companies.
Jessop said new economic deals in the UK have led to a re-evaluation of the UK’s financial prospects post Brexit,
He told GB News: "There has been a reassessment of the outlook over the next year or two, especially in comparison to our competitors in the EU.
“The UK is leading the way in reforming key sectors such as financial services and opening up new markets in the rest of the world. This would not be possible if we were still tied into the EU.
“This reassessment has been helped by new data showing that Brexit Britain is not the laggard that many people thought."
The UK is about to benefit from a £600million boost from German car giant BMW.
The company’s investment will fund the production of two new electric Mini models at a factory in Cowley from 2026.
BMW’s decision could calm fears that post Brexit, the UK’s electric car vehicle industry would decline.
These worries were due to a possible exodus of car companies and post-EU tariffs.
The deal was praised by many Government ministers, with Business Secretary Kemi Badenoch saying that it showed “the Government’s plan for the automotive sector is working”, and Chancellor Jeremy Hunt adding that the investment was “a huge vote in this country as a global leader in electric vehicles”.
A recent partnership with Singapore is also set to strengthen the UK’s economy.
On Friday, Rishi Sunak met with Singaporean Prime Minister Lee Hsien Loong to sign the bilateral investment treaty.
The treaty – which was signed at the G20 summit in India – is the first the UK has negotiated since leaving the EU.
The Prime Minister said that working with international partners was necessary in order to boost the economy.
BREXIT LATEST:
BNP Paribas recommended its clients move their money into the UK stock exchangePA"I am totally committed to delivering on my priorities to halve inflation, grow the economy while reducing government debt, cut NHS waiting lists and stop the boats. But none of these priorities can be achieved without working with our international partners.
“This new agreement with Singapore will take us even further in delivering our priorities and ensure that, as we map the future of the world economy, we are doing so alongside our closest partners,” he said.
The deal is said to create more jobs and bolster both nations’ economies, according to officials.
The UK’s economy could also get an additional boost from European investors, after BNP Paribas recommended its clients move their money into the UK stock exchange.
The cheap pound is said to be seen as an appealing investment to banks and their clients.
The bank’s head of credit research Viktor Hjort said: “The outlook for UK equities is not bad at all. The FTSE is a value market. It has lots of energy and materials and a lot of banks. You can look at the oil price to see where energy is going.”
BNP’s chief European economist Paul Hollingsworth said there had been an environment of “pessimism” regarding the UK post-Brexit.
He said: “There was a lot of caution about UK assets. Things have moved on since then. As we saw, the economy did perform a lot better than people expected.”
Jessop also commented on the pessimistic outlook on the UK's economy, and said that it did look "gloomy". However, said that recent investments and deals could change the outlook in the coming years.
These deals would not have been possible if Britain was still part of the EU, Jessop states.