Prime Minister Boris Johnson’s resignation will initially add to uncertainty in the already shaky British economy. The kingdom is dealing with skyrocketing inflation, a risk of a recession and the aftermath of Brexit.
The exchange rate of the British pound is also low against the dollar and the central bank is in doubt about whether or not to raise interest rates. The UK economy is fifth in size in the world.
The UK has a very high inflation rate, which could rise to more than 11 percent later this year. This is mainly due to global pressure on energy and food prices; A successor to Johnson can’t change that either.
Even before Johnson’s announced departure, the Treasury Secretary resigned. The two disagreed over tax cuts Johnson wanted to introduce to boost his popularity. A successor will now have to give a blow to that.
The UK and Brussels have been arguing about the precise details of the trade relationship with regard to Northern Ireland since Brexit. Johnson was stiff about that. A successor may bring an agreement in this file and that will lead to a better relationship between the two trading blocs.
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