Only three of 50 economists got it right this month on their UK economy predictions for the third quarter. GDP grew 0.5%, versus the average prediction of 0.3% The UK has grown 0.6% over the past 60 years, so last quarter was pretty good proof that Brexit has so far not impacted their economy. Economists continue to predict problems in housing and employment, but at the moment that has not shown up. While it might, and probably to some degree will for a bit next year, I continue to believe the UK will get through this with nowhere near the damage predicted by many. We will know a lot more by next summer but until then, it is just speculation by everyone.
Just yesterday the EU was able to pressure Belgium to force the one holdout province to go along with the Canada trade deal. We don't know what concessions were made to the dairy farmers who were holding up the whole deal, but the fact that some farmers in Belgium had the power to derail such an agreement for the whole EU just magnifies the dysfunction of the group. There are nine more contentious trade deals lined up for approval so we will see if they get approved without similar resistance by others. There seems to be a rapidly growing realization by many that the EU is in real trouble.
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