Brexit: the Remain campaign “was the fear of the project”, according to Liz Truss
And Professor David Blake said with the uncertainty now behind it, the nation is in a fantastic place to capitalize on all the benefits of standing outside the bloc. City economics professor, University of London, was speaking after the publication of the new Deloitte Chief Financial Officer (CFO) survey, which found that more than half of UK CFOs said they had also seen a full recovery of demand for their businesses, or hope by the end of the year. It comes as Prime Minister Boris Johnson prepares to announce the easing of all remaining Covid restrictions will continue on July 19, with the aim of stimulating the economy.
Professor Blake told Express.co.uk: “Certainly companies do not like to invest when there is uncertainty.
“The two main sources of uncertainty in recent years have been Brexit and the coronavirus pandemic. “
Since the start of the year, the UK has left both the EU and the single market, so one source of uncertainty has been resolved, he explained.
Ursula von der Leyen, President of the European Commission
“In addition, the brilliant success of our vaccine development and deployment has eliminated the second source of uncertainty.
“Freedom Day is July 19 and from then on we will have to live with the virus.
“This means that much of the rest of the economy, such as hotels, theaters and cinemas, will now be able to open its doors.
“This explains why business investment is expected to increase in the coming months. “
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“The low productivity of workers is one of the great weaknesses of the UK economy.
“Labor productivity is directly related to capital per worker and this in turn depends on capital investment.
“An increase in business investment is therefore to be warmly welcomed. “
The welcome recovery in the economy would also trigger an increase in demand for workers, Professor Blake said.
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“Before, they depended on cheap labor from the European Union to fill vacancies. But now that we have left the EU, that source of labor is no longer so readily available. “
It was precisely because of the immediate availability of EU workers that companies did not need to train young British workers through apprenticeships, Professor Blake stressed.
As a result, many school leavers found themselves unemployed, with EU citizens doing the job they could as well do.
He added: “After leaving the EU, companies will have to do what they did before – that is, to provide training and apprenticeships to young people leaving British schools. “Therefore, we could end up with a virtuous circle of new workers trained in the use of new productivity-enhancing capital goods that will increase productivity and wages and reduce unemployment.
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What not to like?
“It happened in Japan – a country that has never used immigration to deal with labor shortages. “
Professor Blake acknowledged: “There are short-term issues to overcome, such as the shortage of truck drivers.
“This could be solved by offering short-term work permits to experienced foreign workers. “But overall things are looking up – the economy will fully recover from the pandemic later this year, business investment is booming, job vacancies are at their highest for years and wages are high. real values are also increasing to their highest level in years. What’s not to like?
On the expense side, the survey found that CFOs put more emphasis on expansion plans, with 41% introducing new products and services, or expanding into new markets as a top priority.
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Ian Stewart, Chief Economist at Deloitte, said: “As the economy reopens, CFOs’ perceptions of external uncertainty have fallen below the past five year average and companies have moved away from defensive strategies. that got them through the downturn.
“The pandemic, like all major shocks, will reshape the economy and we will likely see years of normal growth compressed into just a few months.
“In fact, eight in ten CFOs believe that productivity will increase as a result of the pandemic.
“This offers hope for a more comprehensive recovery than after the global financial crisis. “