The article indicates some key factors impacting the economic situation in Brita

Question

The article indicates some key factors impacting the economic situation in Britain six weeks after the vote and for the near future. Which of the following statements is incorrect?

http://www.economist.com/news/britain/21706348-dire-prophecies-doom-have-not-come-trueyet-economy-slowing-fact-and-fiction

a). Exports have not experienced growth, and certainly not the huge boom that was predicted given the dramatic fall in the pound.

b). Consumer spending appears to be solid, however half of Britons never saw Brexit as bad economic news to begin with.

c). Firms have held back on investment, which has negative implications for future productivity and real wage growth. Concerns about a recession in the near future are growing.

Explanation / Answer

(A). Exports have not experienced growth, and certainely not the huge boomthat was predicted given the dramatic fall in the pound.

Because British exports compete mainly on “non-price” factors, such as quality and customer service, making them insensitive to currency fluctuations.

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