It’s not exactly a glittering economic prize for the winner of this week’s election: slower growth, tepid wage gains, a depressed currency and a productivity problem that’s plagued governments for years.
Those challenges are compounding the disruption that Brexit is heaping on the economy, from faster inflation to concern about future trading arrangements. The Bloomberg Brexit Barometer has fallen in the past six weeks and is now in “windy” territory. Here’s what the victor of the June 8 vote will have to contend with in the coming years.
While Prime Minister Theresa May has previously lauded the U.K. for being the fastest-growing Group of Seven economy, that was far from the case at the start of 2017. In fact, you have to go back more than four years to find a weaker performance. The outlook for the rest of the year isn’t much better, and Guy Hands, chief investment officer at Terra Firma Capital Partners, says May isn’t offering answers.