2018.01.3020:52:00UTC+00Weak UK Business Investment Shows Clear Brexit Effect: Carney

According to Bank of England Governor Mark Carney, the disappointing business investment in the country is one irrefutable repercussion of Brexit.

The central bank projects that business investment is four percentage points lower compared to what it would have been if Britain had not voted to leave the European Union in June 2016, Carney stated in his address to the House of Lords Economic Affairs Committee on Tuesday.

The head of the BoE said that business investment has not risen to the degree that the world economy is expanding at more than 4 percent, with the easiest financial conditions, the most favorable financial conditions in more than a decade, with the healthiest balance sheets in almost quarter of a century and with massive opportunities, in conditions of greater certainty.

The International Monetary Fund projections in the previous week indicated upgrades for almost every major economy excluding the UK, which is expected to rise at 1.5 percent this year and in 2019. Full-year year expansion of 1.8 percent in 2017 was the slowest in five years and falls behind other Group of Seven peers.

Carney said that there are challenges to the economy that should be cleared. He withheld the prospect of an investment pick up in 2019, adding that majority of businesses in the UK are seeking certainty and only greater certainty will bring forth more spending.