First estimate of British economic growth for second quarter to be released

British authorities will today release the first estimate of economic growth in the three months to June.

While the British economy grew by 0.5% in the first quarter, business surveys have indicated stagnation since, with companies in the banking and insurance, automobiles and electronics industries among those closing their doors in Britain in response to uncertainty about labour laws post Brexit.

As the June 23, 2016 referendum voted in favour of leaving the EU, businesses have been rushing to complete their work ahead of any imminent disturbances. Variables like the number of employees and housing prices have been indicating towards an economic slowdown. The tumultuous political climate is preventing companies from undertaking long term business investments in the country.

Although Brexit has been projected to protect domestic labour from immigration, in absence of any agreement on the relationship between the UK and the European Union after October 31–which is highly likely–the high trade costs, opportunity costs from lost business and lower productivity are likely to outweigh any benefits.

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