The arrival of Charles III on the throne marks the beginning of a new era for the country
The death of Queen Elizabeth II falls on a United Kingdom stressed by sudden political changes, with the farewell of Johnson and the arrival of Truss, and by an economic crisis among the worst of the most developed states.
The arrival of Charles III on the throne marks the beginning of a new era for the country, characterized above all by economic uncertainty.
Recession fears in the UK are more than realistic, as double-digit inflation, at 10.1% with potential hikes of up to 20% according to Goldman Sachs, presses the BoE into new rate hikes.
According to an economics expert, “in 2007 the UK was richer than the US. Its per capita GDP was around $ 50,000. Now, 15 years later, the UK has not only stagnated, it is a fifth poorer than it was 15 years ago. Its per capita GDP is closer to $ 40,000. Things will almost certainly get worse ”.
As pointed out by Money.it, Truss has unveiled a large package of incentives to help Britons with their energy bills, worth £ 100 billion and capable of reducing inflation by 4-5 percentage points. But economists have warned that the move could complicate the Bank of England’s already daunting task of containing record prices.
Without forgetting that Brexit is still impacting the national budget, with logistical nodes for goods and a lack of manpower.
Furthermore, according to some analyzes, the pound is in focus: “There is a strong possibility that King Charles III will be the first British monarch to pay more than a pound for a dollar or a euro”.
The monarchy also faces constant criticism of its being obsolete and its burden on public finances in a country in the throes of a cost of living crisis.