How Boris will REMOVE uncertainty plaguing UK and economy will thrive FOR YEARS – expertJanuary 14, 2020
The general election is only a day away and an expert has revealed how a Conservative Party majority would make the economy thrive. Bethel Loh, Macro Strategist at online financial trading broker ThinkMarkets told Express.co.uk Boris Johnson as Prime Minister would ensure a better long-run outcome.
Mr Loh said: “An outright Tory majority would finally see Brexiteers fulfil much of their hearts’ desires and market uncertainty fall to multi-year lows.
“In short, a Tory majority provides a better long-term outcome for the UK economy.
“An outright Tory majority would see Boris Johnson eventually ensure a smooth but hard Brexit removing once and for all the Brexit uncertainty which has plagued UK markets for the better part of four years.
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“This would be a welcomed development by markets and could see more positive reciprocation than expected.
“GDP growth in the near-term, while less than what would be expected in a Labour majority, is still positive and would be supported by the persistence of lower rates from the Bank of England (unlike in a Labour majority where inflationary pressures force the BoE to switch direction).
“Ultimately, if Johnson can swiftly arrange new trade agreements once leaving Brexit, there’s no doubt that a pro-business Tory majority would be the better outcome.”
What is the latest on the UK economy?
The economy suffered its worst three months for more than a decade after official figures revealed output failed to grow once again in October.
Data from the Office for National Statistics (ONS) showed the economy flatlined month-on-month in October, after two months of declines.
The numbers also revealed the weakest three months since early 2009.
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John Hawksworth, chief economist at consultancy PwC, blamed Brexit-related uncertainty for the economy’s “loss of momentum”.
He said: “Growth seems likely to remain subdued through the rest of 2019, but we would hope for a gradual revival in activity over the course of 2020 if current political and economic uncertainties ease.
“Our main scenario is for 1 percent GDP growth in 2020 assuming an orderly Brexit.”
Professor Costas Milas, of the University of Liverpool’s management school, described the figures as “quite poor”.
He told the BBC: ”The main point is that our economy continues to disappoint badly, which will probably bring a Bank of England interest rate cut much closer especially if Thursday’s election turns out very inconclusive.”
However, the pound continued to rise this week after gains on Monday.
In early London trading, sterling was up 0.2 percent at $1.3157, and against the euro rose 0.1 percent to 84.18p on Tuesday.
The ONS also released trade data which showed Britain’s goods trade deficit widened by more than expected to nearly £14.5bn in October from £11.5bn in September.
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