Prime Minister Boris Johnson’s resignation will initially add to uncertainty in the already shaky British economy. The kingdom is dealing with spiraling inflation, the risk of a recession and the consequences of Brexit.
The exchange rate of the British pound is also low against the dollar, and the central bank is skeptical about raising interest rates or not. The UK economy is the fifth largest in the world by size.
The UK has a very high inflation rate, which could rise to more than 11 per cent later this year. This is mainly due to global pressure on energy and food prices; Johnson’s successor cannot change that either.
Even before Johnson’s departure was announced, the Treasury Secretary resigned. The two differed over the tax cuts Johnson wanted to introduce to boost his popularity. The Caliph must now deal a blow to it.
The UK and Brussels have been arguing over the finer details of the trading relationship with respect to Northern Ireland since Brexit. Johnson was tough about it. The Caliph may come up with an agreement in this file, and this would lead to a better relationship between the two trade blocs.
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