UK to become ‘emerging market country’, Saxo Bank states| MENAFN.COM

Tuesday, 04 October 2022 07:52 GMT

UK to become ‘emerging market country’, Saxo Bank states


(MENAFN) The UK is “more and more looking like an emerging market country,” Saxo Bank Head of Macro Analysis Christopher Dembik announced in a research note on Monday, CNBC announces.

The forecaster pointed to political unsteadiness, trade disruptions, an energy crisis, and high inflation as main indicators behind this.

“What Brexit has not done by itself, Brexit coupled with Covid and high inflation have succeeded in doing,” Dembik added. “The UK economy is crushed.”

As said by Dembik, the only thing banning it from being characterized as an emerging market nation is a currency crisis, with the British pound sterling holding company regardless of all of the macroeconomic headwinds.

“It only dropped 0.70 percent against the euro and 1.50 percent against the US dollar over the past week,” he added. “Our bet: After surviving Brexit uncertainty, we don’t see what could push the sterling pound into a free fall.”

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