UK Economy: Fears of post-referendum recession diminished with UK's Services sector performing better than expected

The video discusses the potential economic impacts of Brexit, highlighting concerns about an economic shock and the possibility of a recession. Despite these concerns, current economic activity remains strong, particularly in the services sector, which constitutes 80% of the UK's GDP. The video contrasts the current economic situation with past recessions and explores the potential for future economic stabilization or downturn. It also examines local economic changes in Southampton, where the economy has shifted from manufacturing to services. Finally, the video raises key questions about future economic growth and the Bank of England's interest rate policies.

What was the initial expectation regarding the economic impact of Brexit?

• It would lead to economic growth.

• It would cause an economic disaster.

• It would have no impact.

• It would improve trade relations.

Which sector is highlighted as a major contributor to the UK's GDP?

• Agriculture

• Technology

• Manufacturing

• Services

What are some components of the services sector mentioned in the video?

• Shipbuilding and agriculture

• Automobile and textiles

• Technology and mining

• Retail, finance, and tourism

What economic shift has occurred in Southampton according to the video?

• From services to manufacturing

• From agriculture to technology

• From manufacturing to services

• From technology to agriculture

What are the three big questions facing the City of London post-Brexit?

• Will growth continue, was the interest rate cut justified, and will there be another cut?

• Will there be a new referendum, will taxes increase, and will trade improve?

• Will manufacturing return, will services decline, and will tourism increase?

• Will the pound strengthen, will exports rise, and will imports decrease?