Since European Union's economy is finally recovering, a noted economist proposes three significant areas that U.K. officials should focus on to sustain its growth: medium-sized businesses, overseas trade and linking of geographic powerhouses to maintain the economic model.
Bloomberg cited a monthly report from Bundesbank that declares "exports may benefit from the continuing recovery in the euro area."
In addition, domestic demand will be highlighted as Bundesbank estimates only 0.5% inflation this year, along with 19 European countries which would get a boost due to oil price drop.
On that note, North East Chamber of Commerce Director Ross Smith, told the Chronicle Live, "Our region is the UK's leading exporter and is leading the way on key innovations including in energy and engineering."
However, Chief Economist and Head of Knight Frank Commercial Research Department, James Roberts, enumerated on the Daily Mail UK three issues the administration must develop; foreign trade, mid-sized businesses and the merging between powerhouses.
James Roberts specializes on the London City's market and is an annual key speaker at Knight Frank's Central London, discussing the economic outlook and possible market consequences.
According to Roberts, the current bylaw blocks the foreign trade, which is fundamental to the recovering economy. The European Union must be less invasive to medium scale businesses. They must recheck regulations that plug up entrepreneurs to enter the EU.
There are also shortages of skills and health workers. As businesses must hire workers they needed, the authorities must remain flexible to hire workers outside the country.
Another area is the mid-market, which is only 1% of the business industry but generates over £1T profit, employing one-third of the entire workforce.
Medium-sized entrepreneurs get apprenticeships and concentrates on export and long-term growth. Authorities must support mid-sized businesses as they employ people.
And critically, the powerhouses; last month, the UK Government had released a blueprint of Northern Powerhouse showing a £13B investment of the northern transport.
The Northern Powerhouse will bridge the gap between north and south, creating a more competitive, balanced and stronger economy. Improving the transportation is essential; it will strengthen connections and unite cities and regions. It would be a lot easier for businesses as well to access its market and arrange labor forces.
At this time, the North and the South powerhouses are progressing gradually, failing to draw investments and tolerating the impact of the economic slug. There is an obvious boundary between the two and it clogs and decentralizes spending power.
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