Brexit is looming ever close and with Prime Minister Boris Johnson at the helm, it seems Britain could be faced with no deal after all. No one knows exactly what will happen after Britain leaves the European Union but the prospect of no deal has heightened fears in parts of the economic sector. Bank of England governor Mark Carney has predicted the value of the pound would fall in response to what he described as a “real economic shock” – claiming products such as petrol and food would become more expensive if the UK leaves the EU without an agreement. And now new data from the Office for National Statistics (ONS) released on Friday showed the UK economy shrank by 0.2 percent in the second quarter – the first time since 2012 that this has happened, raising fears of a recession.
As the Brexit deadline looms, with little hope of an agreement being reached before October 31, a growing number of UK and global investors will move their assets overseas, according to the head of one of the world’s largest independent financial advisory organisations.
Nigel Green, Founder and chief executive of deVere Group, told Express.co.uk: “Sterling has taken another pounding after the UK’s economy was shown to have contracted in the second quarter, adding to the economic woes on top of no-deal Brexit concerns.
“The pound has fallen more than 4.5 per cent against the dollar in July and August over fears Boris Johnson’s government is pushing the country towards a no-deal Brexit –which most economists think would be economically damaging.
“Should the UK leave with no-deal, the pound is likely to remain weak for several years until the country and the EU readjusts.”
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Prime Minister Boris Johnson is preparing for a battle in parliament come September, as his cross-party opponents are divided on the best way to prevent a no-deal Brexit.
A motion of no-confidence in Mr Johnson’s government could be triggered, as many MPs fear what a no-deal Brexit could do to the economy.
This could cause a general election, should MPs not form an alternative government within the 14-day limit.
On the possibility of a general election, Mr Green said: “There is growing speculation too that there will be a general election in the autumn and this will add to the uncertainty for the pound and Britain’s economy.
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“The situation will get even more serious should a Jeremy Corbyn-led Labour government win that election.
“His high tax and low-profit policies and anti-business rhetoric would deliver a hammer blow to the already floundering economy.”
Mr Green added: “Depressingly, Britain appears to be stumbling towards an economic abyss.
“UK and global investors will be becoming increasingly nervous of this deteriorating situation.
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“They will, inevitably and quite sensibly be looking to grow and safeguard their wealth by moving assets overseas through various established international financial solutions.
“The pace of this trend is likely to increase over the next few months as the geopolitical issues intensify.”
A poll of more than 740 clients carried out by deVere Group fond that six out of 10 investors are now actively seeking to move assets out of Britain.
Nigel Green, the CEO and founder of deVere Group, said: “There is a legitimate and growing sense amongst those who were polled that in order to build and safeguard wealth, assets should be moved outside of the UK.”
He added: “Investors are seeing a perfect storm brewing: the UK’s slowing economy, weak global economic growth, the pound at a 10 year low, the increasing possibility of an interest rate cut and the risk of a no-deal Brexit pushing the UK into a recession.”
“The poll underscores that the UK is no longer an attractive place for investors.
“The UK is now at a critical point – perhaps the most critical since the global crash.
“Many are simply not prepared to risk their wealth and are considering international options.”