Europe

Sunak poised to oversee UK economic boom as Freedom Day turbocharges Brexit Britain

Rishi Sunak laughs off request for bank holiday after Euros final

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Experts at Saxo Group said that Chancellor Rishi Sunak will ride this economic boom after all social distancing measures ended in England this morning. The leisure, hospitality, entertainment and retail industries are expected to be the main financial winners of the reopening, it said.

Nightclubs are also allowed to reopen and quarantine-free travel to and from amber list countries will give holidaymakers a welcome boost, it said.

However as the economy reopens, online services, food delivery firms, as well as the building and renovation industry, could be negatively impacted, it warned.

Adam Seagrave, global head of sales trading at Saxo Group: “As the country reopens, people are eager to go and enjoy the things they’ve been deprived of for over a year.

“Thousands will travel, party and go out again, meaning that the overall UK economy will get a boost.

“Inflation will impact various industries differently depending on how the reopening will influence their activity.

“Certain price pressures are expected to cool off for commodities and building materials.

“For example, the travel industry in the UK should get a boost especially as the Covid situation of certain traditional destination countries (Spain or France) is getting in the way of the normal influx of UK tourists.

“Money will instead be spent in the UK.

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“It is important that we see a return to full employment as this is crucial for the economy, and obviously for that we need to avoid new COVID-19 lockdowns.”

Mr Seagrave spoke as the Office for National Statistics revealed that total exports of goods, excluding precious metals, increased by £1.3billion (4.9 percent) in May, driven by a £1billion (8 percent) increase in exports to EU countries.

The ONS data also showed that the UK imported more from non-EU countries than the EU for the fifth consecutive month, although the gap is narrowing.

It comes as Britain continues to strike international trade deals with countries outside the Brussels bloc.

John Hardy, head of FX Strategy at Saxo Group: “Freedom Day means a reopening of the country before most of its European peers.

“At the same time, it sounds like the European Central Bank’s monetary support won’t go away in the near future, unlike what we’re seeing in other parts of the world.

“Also, last week we saw a hotter UK inflation than expected.

“This points towards a stronger pound in relation to other currencies and especially the euro.”

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