UK exposed to recession as it takes over from US as global weakest link

The UK has taken over from the US as the weakest link in the global economic chain. While we expect ...

The UK has taken over from the US as the weakest link in the global economic chain. While we expect this sobriquet to be temporary, it is clear the UK economy is more vulnerable to recession in the short term. The US has cut interest rates aggressively since September, while the MPC has failed to offset the rise in mortgage rates over the period. US fiscal policy has been loosened by 1% of GDP this year, while there has been a modest tightening of UK fiscal policy. Likewise, the currency stimulus has been considerably smaller for the UK economy because eager companies have offset two-thir...