IMF economic forecast: UK doesn't have 'external engine that it once had' - El-Erian

As the IMF warned the world's economy is entering a "perilous phase" of low economic growth and high financial risk, Mohamed El-Erian, chief economic adviser at Allianz, has told Sky News, inflation has proven to be much stickier than previously thought.

When asked why the UK is forecasted to be the worst-performing economy in the G7, Mr El-Erian mentioned high energy prices and the limited ability to rely on external partners amid Brexit.

#imf #g7countries #inflation

[RickMentore]

"UK does not have 'the external engine that it once had;" incredible, that conservative, Brexit minds could not foresee this!

[Afc]

Uk is in such sad state of affairs unbelievable tory rule

[raymonddixon]

They somehow managed to avoid the elephant in the room. "Brexit"

[rorywilson]

I really don't know if Labour are the answer to our current problems, but I'm certain the Tories over last 12 years are the direct cause of most of them.

[Athanael]

If only we had a huge market at our doorstep instead of relying on far away countries...if only...

[donaldduck]

UK is the only country in the world where astronautics engineers are considered unskilled. Don’t know much about external engines but the internal one is pretty much wrecked, can only survive on credit, debt and shopping for so long.

[micbutterfield]

Let’s see, what’s changed over the last couple of years? What geopolitical event separates us from the rest of the western world?

[earnestequivocation]

He’s alluding to the B WORD……
We’re not allowed to say the B WORD…..
They’re not allowed to say the WORD…..
Mental state of affairs

[jimih]

Cameron should be ashamed of himself for allowing a nation of sun readers to vote on Brexit 😡

[jasonuren]

I don't know about an 'external' engine, the internal engine is pretty ropey as well

[shamanahaboolist]

I mean how could they have seen this coming... they were only being warned since the early 2000's.

[angelobkoljenovic]

UK 🇬🇧 is one the rod that is going to be one of poorest in Europe in years to come

[Andrew-vxls]

Despite Brexit, GB is still in the G7 ? Perhaps that needs checking first!

[Sam-lwmx]

We just need to believe in Brexit 😂😂😂😂😂😂😂😂😂

[daveh]

Damn sticky inflation. 🙄

[turkayd]

Look at the brands and one will know how a country's going on

USA - Apple, Google, Microsoft, Tesla, Nvidia, Intel, Qualcomm,
Germany - Mercedes, BMW, VW, Adidas, SAP...
Japan - Sony, Panasonic, Toyota, Honda...
France - LVMH, Peugeot
Italy - De' Longhi, Ferrari, some luxury fashion brands...

UK - Rolls-Royce? Mini-copper? they already past their prime and become only niche players, and nowadays one can barely name any industry based in the UK

[oldskoolmusicnostalgia]

Hahaha, got to love the use of a euphemism like "external engine" that could be referring to so many things.

[richardhumphrys]

Of course interest rates will push higher to push inflation lower from 4 percent.
They just say they won’t to ease selling pressures on equity markets.

[ssuwandi]

The engine was taken over by the US once upon a time. Just now Macron has said for Europe not too dependent on US affairs!

[volodymyrv]

The economist must clearly say:
Where is the failure that gave rise to inflation?
Which branch of the economy is causing imflation?
What new laws caused imflation?