deficit in the world in absolute terms
Regardless of the continued relationship between Britain and the EU, there is no doubt th expectations of the consequences of the Berkazit alone have already contributed to the decline in economic performance of Britain, because economic activity is motivated by forward-looking behavior.
Among the notable effects were the depreciation of the British pound, which led to an increase in inflation, which reached a peak of 3% in the fourth quarter of 2017. The end result was the erosion of purchasing power and the weakening of private consumption, while the depreciation did not significantly affect the level of net foreign trade In general, the uncertainty about the situation after the implementation of the Berkazit paralyzes more and more forward-looking decisions to be made, as reflected by the contraction in business investments made during 2018.
In summary, S & P’s sensitivity index does not reflect potential political or market side effects. The sensitivity index distributes current economic and financial ties to Britain’s fifth-largest economy, noting also which countries may be more exposed to Britain’s most prominent macroeconomic feature: the current account deficit of 5% of GDP.
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As a major supplier of equity and debt financing to the UK, the Eurozone is also the largest investor in the UK. Any change in the nature of relations between Britain and the EU will affect Europe, but the greater impact on the relationship between Britain and the EU is on Britain itself, the only EU member not included in the index.