Nataly Kambur
The draft budget 2017, the first one after the Brexit referendum, is reported to have been introduced to the House of Common of the British Parliament. According to the UK Minister of Finance, the draft budget focuses on investments in infrastructure and innovative technologies, which is expected to back future economic growth and is expected to help the UK get ready for the Brexit.
All in all, the Minister of Finance reports that the Brexit talks and the process of quitting the European Union are going to cost the United Kingdom some 122 billion pounds over the next 5 years, which is much more than expected previously.
At the same time, the minister predicts that the UK economic growth is probably going to slow all the way down to 1.4% amid lower investments and consumer demand triggered by a weaker national currency. Still, the government is planning to introduce a public investment fund, 23 billion pounds worth, which will be used to stimulate investments. Also, they are planning to cut corporate taxes down to 17% by 2020. Public borrowing is expected to shrink from 68,2 billion pounds all the way down to 59 billion pounds on 2017.
Also, they won’t be able to see a budget surplus in 2020 as expected before. A balanced budget is going to be a challenge for the next parliament, elected in 2020.
According to the SRP Department (AO_Zotik and WPR_VSmark) of Masterforex-V Academy, GBPUSD is currently building a recovery of level Daily Weekly against a long-term downtrend. For now, the price has completed wave A of level H4 and is busy building wave B against it.
Nataly Kambur
