Amid the latest stumbling block in negotiations with the UK and EU and the ongoing disconnect between the UK government and parliament, the World Economic Forum has found that the UK has dropped to the ninth most competitive economy globally in its latest Global Competitiveness Report.
Markus Kuger, Chief Economist, Dun & Bradstreet said: “The latest developments suggest a deal between the UK and the European Union before the EU summit next week seems almost impossible and it’s likely that the UK government will have to ask for an extension of the Brexit deadline, as instructed by parliament in September.
“Dun & Bradstreet predicts the current deadlock between government and parliament will result in snap elections later this year. If there is no outright majority, our analysis suggests a hung parliament would prolong the political uncertainty that has weighed on the value of the pound and stifled economic activity in the UK.
“If the government push for a no deal Brexit, this would impact and increase the risks of doing business. Our country risk ratings for the UK have been being downgraded three times since the 2016 referendum and as this uncertainty continues, we are maintaining a ‘medium risk’ rating for the UK.
“It was announced today that the UK has slipped another position in the World Economic Forum’s latest competitiveness ranking. However, the UK is still in the top 10 and long-term economic potential still exceeds that of many other European countries. The UK scores equal highest for macroeconomic stability in the WEF ratings but the outcome of Brexit negotiations could impact international competitiveness and economic stability going forward.”