Britain’s vote to leave the EU is clearly damaging the UK economy even though there has been a strong recovery in the world economy.

This should not be surprising, since consumer confidence is falling, and investment intentions are quite weak.

There is deep confusion over what will happen after Brexit takes effect in March 2019. Virtually everybody understands that the exercise, whether a soft or a hard exit, will impose major costs on the British economy.

Britain’s economy expanded only 1.1% y/y in the first quarter of 2018 compared to U.S. growth of 2.8% and Euro Area growth of 2.5%.  Business investment has also slowed in the UK, and much of this slowing is related to uncertainty and the expectation of more difficult economic times going forward.

The British economy is still creating jobs, but at a much slower pace than last year.

According to CNN, there were 451,000 new jobs created in the first year after the Brexit Referendum, but only 112,000 in the following nine months.

Moreover, over 70,000 retail jobs have disappeared since the Referendum, and the pace of losses has accelerated in the past year. Employment in construction has also declined by 17,000 over the twelve months ending in March.

Britain’s Economic Growth Has Slowed And Inflation Has Escalated Because Of The Currency Weakness