GDP slump piles pressure on chancellor ahead of budget

Matthew Ryan, CFA Ebury

Nervousness around the Budget has likely weighed on key economic drivers, while disappointing export performance to the US and a stagnating labour market have kept GDP in a chokehold.

With the economy losing steam, the ‘all but confirmed’ Budget tax rises look set to further unsettle businesses and households in the run-up to Christmas – dimming hopes of any material recovery.

Businesses are growing increasingly vocal about the Budget’s potential hit to profits and markets – and we’re seeing many boost their hedging to guard against volatility.

With just under two weeks til the Budget, businesses - especially SMEs - must limit their exposure to any shocks or market volatility by ensuring maximum preparation, securing access to flexible finance, and implementing robust FX hedging strategies.

Author

Matthew Ryan, CFA

Ebury

Matthew is Global Head of Market Strategy at FX specialist Ebury, where he has been part of the strategy team since 2014. He provides fundamental FX analysis for a wide range of G10 and emerging market currencies.

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