The Euro Zone grew at its fastest rate in a decade in 2017 according to figures released by Eurostat and set out in this report in The Independent (HERE). The 2.5% increase recorded in the calendar year ending in December was the biggest since 2007. This is more or less the rate we achieved before the referendum, since when growth has slowed to 1.7%.
In fact the Independent have a nice graph (see below) showing how we have neatly crossed over.
Balraj Sroya of Foenix Partners, a financial planning and foreign exchange company, said, “The eurozone over the last decade has seen a lot of uncertainty with the recession hitting the bloc and the Greek debt crisis. However, with strong GDP...and other economic indicator figures the eurozone has put all that behind them and is looking stronger and more stable than ever, despite Brexit and the ongoing uncertainty surrounding it,”
In the meantime, here in the UK, the Brexit "dividend" is starting to arrive. Car production in the UK fell in 2017 for the first time since 2009 when we were in the middle of the financial crisis. Domestic sales and export sales were down as well as investment. Brexit related uncertainty is blamed along with confusion over diesel car use (HERE).
The report mentions the company Adient which makes car seats, one in every car made in the world is fitted with these seats apparently. The MD says delays of 2-3 hours at border posts would be "a big problem" for the just in time manufacturing systems which all the major car companies use. Once we leave the single market and the customs union there will be borders and there will be checks on rules of origin and compliance with EU regulations - and there will be delays - and "big problems". This is inevitable.
It would be fascinating to know what the car industry has said to government and what government has said in return.
