“We are the fifth largest economy” seems to be the mantra and the solution to any problems or difficulties, continuously repeated by May and the three Brexiteers during the Conservative Conference. But is it still true?
In 2015 we were indeed in the fifth largest economy with nominal GDP US $ 2.848 trillions. On the 5 October 2015 one pound bought US$ 1.51. On the 5 October 2016 the same pound bought US$ 1.27. We lost 16% in our value. We lost US$ 453 billions in our GDP. We are now the sixth largest economy at US$ 2.39 trillion. After France (US$ 2,63 trillion).
The loss of US$ 453 billions in our domestic product value was achieved in just over 100 days and one declaration about Article 50. That is some doing by any standard. And incidentally it gives you of over 45 years of the EU contribution.
Relying on the negotiating power because of being the sixth largest economy is misleading: The difference between the top three (US, EU and China) and the 4th, 5th and 6th is a difference in multiples. China is almost 4.5 times as big as the UK, EU almost 7 times as big, US 7,5 times as big.
But instead of such a reality check Fox&Co go on about the Commonwealth, Australia, China’s willingness to buy our assets …. – has anybody praised the Greeks when the Chinese bought the port of Pireus? If I remember correctly that was always presented as a failure. How things change.
“We are the fifth largest economy and we can negotiate more less what we want.” I would not count on that. This is not #Brexit this is #Blindxit.
George