And why not? What is the point of investing in a sinking ship. The UK is the sick man of Europe since the Brexit vote.
Samuel Tombs: there is 'clear evidence that Brexit has been bad for the economy' - Business Insider
Samuel Tombs: there is 'clear evidence that Brexit has been bad for the economy' - Business Insider
Companies are simply parking the extra cash offshore
"They're not spending it, they're not investing it, they're just storing it overseas in bank accounts at the moment, taking a very cautious approach. Obviously, exporters face a lot of uncertainty right now as a result of the Brexit vote, so they're not pitching any long-term investment decision."
That's the big risk for the remainder of the year, Tombs believes. That the Brexit dividend inherited by exporters in the form of a devalued pound is wasted, and the political uncertainty surrounding Brexit becomes a concrete bar to new investments in the real economy.
"They're not spending it, they're not investing it, they're just storing it overseas in bank accounts at the moment, taking a very cautious approach. Obviously, exporters face a lot of uncertainty right now as a result of the Brexit vote, so they're not pitching any long-term investment decision."
That's the big risk for the remainder of the year, Tombs believes. That the Brexit dividend inherited by exporters in the form of a devalued pound is wasted, and the political uncertainty surrounding Brexit becomes a concrete bar to new investments in the real economy.
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