Perhaps you think you have already read everything about BREXIT and that this article is just one among many others. However, the present article may cause a 180-degree turn in your vision on this issue.
Both before and after the UK voted in favor of leaving the EU, we heard arguments in the media about how bad it could be for the British economy to make a decision like this. However, we will show you the reasons why the British economy can become one of the strongest in the world in the coming years.
The macroeconomic data of the British economy is more similar to a strong economy, such as the American economy, than to a weak economy in crisis, such as the European economy. This statement is indisputable, the numbers cannot be denied.
The United States unemployment rate decreased to 4.9%. Its economy is growing at a rate of 2.10% annually.
That is why the Federal Reserve argued that achieving these results began a rise in interest rates, a fact that has considerably strengthened the dollar since 2014.
The British economy, has diminished its unemployment rate to 4.90%. Its economy is growing at a rate of 2.20%.
Do you find these figures to be similar? Unlike the dollar, the pound is hitting a 30 year low. If we add to this the fact that the British economy is an imports economy (it buys more than it sells) and, therefore, needs a strong currency, how long do you think it will take for the monetary authorities to increase British interest rates?
You may think this is crazy, since people are talking about easing measures to make the British Pound even cheaper. Nevertheless, know that just over a year ago, there was a debate on who would be the first to raise interest rates: the US or the UK.
Maybe you are now starting to understand the title of this article. BREXIT has been a great historical opportunity for thousands of investors. In the coming years the British Pound will become one of the strongest currencies in the world.
Consider the following: BREXIT frees the British economy of tax burdens and gives much greater autonomy to legislative regulatory level. It also has a very powerful financial sector. These are same characteristics that brought Switzerland into what we refer to as their golden age.
Who knows whether or not, in a few years, you will look back at the year 2016 as one in which you should have invested properly.
Chart 3:
