Is the UK economy now better off since the coalition entered government?
Written by Saxo Capital Markets
In December's Autumn Statement, British Chancellor of the Exchequer George Osborne presented the coalition government's proposals to aid the UK's economic recovery in 2014. As the government presents its plans for the economy in the New Year, Saxo Capital Markets has published a new infographic which gives a snapshot of the UK's public finances, the real economy and currency. Is the UK now better off since the formation of the coalition government in 2010? Check the Autumn Statement infographic and share your projections on Twitter.
The infographic includes forecasts from Saxo experts on the future of sterling, the budget deficit and prospective unemployment levels in 2014. Since the coalition formed government, sterling has strengthened against the euro and the US dollar, and with the Federal Reserve expected to slow down its QE programme in 2014, Saxo's John Hardy suggests that the pound will continue to strengthen against the euro but weaken against the dollar.
When the coalition formed in 2010, the Chancellor outlined the government's plans to cut the structural budget deficit to zero by 2016, yet public debt has escalated (as a percentage of GDP) as a result of these measures. Saxo Bank's Nick Beecroft anticipates that while the government will further cut the budget deficit, debt will continue to climb.
Will the 2013 Autumn Statement have a bearing on unemployment figures? Since 2010 unemployment rates have fallen from 8% to 7.6%, highlighting a steady recovery in the UK economy.
To what extent will the Autumn Statement facilitate the UK's economic recovery? Do you share Saxo's projections for public finances, the economy and sterling in 2014? Join the discussion with @SaxoMarkets on Twitter.