Weekly Economic Insights - 18 March 2019

Macro Highlights - 3/20/2019

Highlights of the week

Economist insights: Significant lack of progress made on the Brexit front, further economic slowdown in Japan

United Kingdom

  • This week British MPs once again rejected the Brexit deal negotiated by Theresa May and the European Union…
  • … while voting against the possibility of a no-deal, and then in favour of a delay of the country’s withdrawal date from the EU. The latter option would require the unanimous approval of the EU27
  • Uncertainty thus remains, as does the risk of a hard Brexit. Moreover, the Bank of England reactivated its bilateral swap agreement with the ECB to provide UK banks with euros…
  • … to limit, according to our analysis, the downward spiral of the pound sterling and UK asset markets that might occur in the event of a no-deal Brexit

Japan

  • 2018 was marked by an economic slowdown, with GDP growth of 0.8% after 1.9% in 2017
  • Recent export and industrial production data as well as soft indicators suggest that this economic slowdown could continue in Q1 2019

 

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