Britain voted to ditch the EU, and their currency fell by 13% of its value against the euro. That means the cost of Europe vacations for Britons will be higher than usual, so will be the foods like meat, cheese, wine, etc. which is exported from other parts of Europe. Not to mention gas which has become expensive.
The Britons have not taken the inflation lightly and have started to show more support to the Labour party in the parliamentary elections. The economy currently due to Brexit is weak, the prices are high, but the wages have not gone up. Mr. Stampton, who is a resident of London voted for a party which advocated for Brexit but is a traditional voter for Conservatives. The pound value has made him resort to check out the parks of South London instead of sun-kissed beaches in Greece for a yearly summer vacation.
The economy has not grown a great deal compared to the previous quarter last year. It has only seen a 2% growth in this quarter. Majority of the economic activity in Britain is made up of consumer spending, so when the ordinary people are in trouble, they spend less and hence becomes decisive for the economy. The average worker has to wade through the high prices of daily consumer goods coupled with no increase in wages. Some economists are expecting the country to fall into a recession as they expect the economy to grow by 1.5 to 1,7 percent annually over the next couple of years.
Research reveals that the credit card balances are 10% higher than compared to the same time last year. That according to the Bank Of England is the fastest growth in a decade, and this is a cause for concern. Consumers will soon exhaust all sources of money as the paychecks are deflated due to inflation. Borrowing is growing faster than real incomes, and that means the consumers will not be able to keep the economy going with the wages, not in pace with inflation.
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