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UK economic strategy could bring short-term results

Monday, August 12, 2019


UK economic outlook.


The United Kingdom’s economic strategy under Prime Minister Boris Johnson signals a clear break with the fiscal conservatism of the last decade. In order to both boost productivity and growth, and address the political backlash against cuts to public services, the government has promised to implement significant spending increases and tax cuts.


  • London's plans are to show the EU that it is ready for a no deal and opposition parties that the Conservatives are ready for elections.
  • Extra borrowing will not cause significant market difficulties in the short term, even if there is a no-deal Brexit.
  • A no-deal Brexit will increase significantly the pressure to strike free trade agreements with such countries as the United States.

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