The polls were right this time: In the UK elections, the Conservative Party won a solid majority of 74 seats – the party’s largest since Thatcher’s election in 1987. This will allow them to “get Brexit done” in 2020, reducing the uncertainty in the UK economy. Risks of early elections are rather low in the next three years. As a result of lower uncertainty and higher fiscal spending, Euler Hermes revised on the upside its 2020 growth forecast for the UK from +0.8% to +1.0% and expects growth to continue to recover into 2021 (+1.6%).
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