What will happen to the UK economy after Boris Johnson leaves? | NOW

The resignation of Prime Minister Boris Johnson will initially add more uncertainty to the already faltering British economy. The kingdom is dealing with soaring inflation, a risk of recession and is struggling with the aftermath of Brexit.

The pound sterling exchange rate is also low against the dollar and the central bank is in doubt whether or not to raise interest rates. The UK economy is the fifth largest in the world.

The UK has a very high rate of inflation, which could rise to more than 11 per cent by the end of this year. This is mainly due to global pressure on energy and food prices; A successor to Johnson can’t change that either.

Even before Johnson’s announced departure, the Treasury secretary resigned. The two disagreed on the tax cuts that Johnson wanted to introduce to boost his popularity. A successor will now have to deal a blow to that.

The UK and Brussels have been arguing over the precise details of the trade relationship with Northern Ireland since Brexit. Johnson was adamant about it. A successor can bring an agreement in this file and that will lead to a better relationship between the two trading blocs.

Gabrielle Rhodes

"Friendly travel trailblazer. Certified gamer. Evil bacon practitioner. Analyst. Problem solver."

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