Why investors should feel bullish about the UK

clock • 2 min read

While the UK economy has recovered markedly since the financial crisis, UK GDP growth is set to slow. GDP growth was 2.2% in 2015, and is now forecast to slow to 1.8% in 2016 and 0.9% in 2017.

The quadruple deficit; 4% government spending deficit, 6% current account deficit, 1% corporate spending deficit and 1% household deficit renders the UK economy fragile. The result is likely to be a constrained fiscal package by Chancellor Philip Hammond and continued sterling weakness. However, this is not all bad news for UK equities as seldom is GDP growth positively correlated with stockmarket movements. Investors are usually much more concerned with inflation projections, interest rate and currency movements and earnings revisions. In this respect, investors should feel more b...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot