Truss won't save UK from recession by cutting taxes, says expert

With the information that Liz Truss is to change into the subsequent British Prime Minister, what does it imply for the nation's economic system? Taking on from Boris Johnson, Truss may have a brimming in-tray, with severe considerations concerning the cost-of-living disaster, the vitality disaster, and Brexit hurdles.

What's extra, the UK’s economic system is likely one of the weakest in Europe, and has simply slipped behind India to change into the sixth largest world economic system.

"I do suppose that is, to a big extent, the consequences of Brexit," mentioned Antonio Fatas, Professor of Economics at INSEAD enterprise college. "Now that we're completed with Covid, we begin seeing the consequences of an economic system which is remoted from the remainder of the world." 

Fatas advised Euronews that he does not suppose Truss' vow to decrease taxes can save the nation from recession.

"I believe the final recipe that [Truss] is coming with, which is chopping taxes throughout the board to stimulate progress [...] I am unsure that recipe goes to ship".

"The UK funding price is likely one of the lowest, if not the bottom, amongst advances economies. Productiveness within the UK has been struggling now for greater than a decade".

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