Dun & Bradstreet drops the UK's risk rating and assigns overall outlook to 'Deteriorating'
“The value of the pound has fallen, counterbalancing some of the immediate adverse impacts of June’s Brexit vote. Worryingly, the UK’s preliminary GDP growth figures for Q3 slowed to 0.5%, and the weaker currency will prompt rising inflation figures and reduce opportunities for exporters selling to the UK. However, while it’s true that uncertainty from the EU referendum is clouding the medium- to long-term outlook, this is not a time for panic or rash decision-making. The outcome of Brexit remains unclear, and it will not be clarified until at least two years after Article 50 is invoked.”
“Theresa May has confirmed that Article 50 will be invoked in the first quarter of 2017, giving the UK until the first quarter of 2019 to fully exit the European Union. As the government appears to be leading the UK towards a ‘hard Brexit’, and with the pound having already fallen to a six-year low against the Euro, companies should be taking the appropriate risk management measures. Businesses must carefully assess growth opportunities while preparing for the changes that Brexit will bring.”
Markus Kuger, Senior Economist, Dun & Bradstreet