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British expats warned over Johnson PM effect on sterling and investments
| Published: | 17 Jun at 6 PM |
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UK financiers are warning a victory for Boris Johnson will result in plunging sterling exchange rates and a massive loss in investor confidence.
Should the controversial candidate win his battle for leadership of the Conservative party and the PM job, a general election would follow no later than May 2002, with bookies predicting a landside triumph likely to wipe out the Labour party as well as its leader Jeremy Corbyn. Worse still, even before a general election could be called, Johnson’s promise to yank the UK out of the EU on 31 October via a no-deal exit will have already hammered the stock market and caused a fresh run on the pound sterling.
British expats living in European Union member states are already suffering from the fall in sterling, especially if they’re retirees living off the ungenerous British state pension, with a large number of long-stayers still unable to vote even if a general election is called. The British parliament seems powerless to stop the process, even although it voted against a no deal exit several months ago, and Brussels’ hands would be tied as well. For expats in Europe who see no option but to return to the home country, the drop in sterling has reduced purchasing power and caused a fall in living standards across the country. Imports are now more expensive, and the inevitable rising prices aren’t being absorbed by suppliers.
The argument that exports are benefiting from the pound’s fall is fake news, as around 50 per cent of Britain’s finished goods exports rely on components imported into the country, meaning prices will still rise due to the low pound. For business travellers and expats, it’s all bad news and likely to get far worse should Johnson get his wish. Financial services will also be hit, as the sector is built on overseas investment attracted by a strong pound. For expats still living and working or retiring overseas, the only way forward would seem to be staying where they are and cutting corners where they can.
Should the controversial candidate win his battle for leadership of the Conservative party and the PM job, a general election would follow no later than May 2002, with bookies predicting a landside triumph likely to wipe out the Labour party as well as its leader Jeremy Corbyn. Worse still, even before a general election could be called, Johnson’s promise to yank the UK out of the EU on 31 October via a no-deal exit will have already hammered the stock market and caused a fresh run on the pound sterling.
British expats living in European Union member states are already suffering from the fall in sterling, especially if they’re retirees living off the ungenerous British state pension, with a large number of long-stayers still unable to vote even if a general election is called. The British parliament seems powerless to stop the process, even although it voted against a no deal exit several months ago, and Brussels’ hands would be tied as well. For expats in Europe who see no option but to return to the home country, the drop in sterling has reduced purchasing power and caused a fall in living standards across the country. Imports are now more expensive, and the inevitable rising prices aren’t being absorbed by suppliers.
The argument that exports are benefiting from the pound’s fall is fake news, as around 50 per cent of Britain’s finished goods exports rely on components imported into the country, meaning prices will still rise due to the low pound. For business travellers and expats, it’s all bad news and likely to get far worse should Johnson get his wish. Financial services will also be hit, as the sector is built on overseas investment attracted by a strong pound. For expats still living and working or retiring overseas, the only way forward would seem to be staying where they are and cutting corners where they can.
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