Ahead of the International Monetary Fund spring meetings, Jeremy Hunt will meet with several high-profile US businesses in an attempt to promote the UK financial and creative services.
Hunt Seeks to Strengthen Ties
Whilst the respective countries are generally looking inwards (UK voted to leave the EU and America added tariffs to several exported goods), the UK is keen to align itself economically with the US.
Geopolitical Instability One Reason for Closer Ties
Hunt is expected to use the rise in geopolitical uncertainty as a reason for the two countries to further align. He’ll stress the importance of global allies working together in testing times.
Double-Stop Trip
Whilst the IMF spring meetings will take place in Washington, Hunt will initially head to New York, where it’s expected he’ll meet with representatives of Bloomberg, Comcast Corp and Blackrock Inc.
Hunt Outlining Trip Aims
Hunt said: “At times of instability across the globe, we are reminded that we are stronger when we stand together. The US is our most important strategic ally and we are both at the forefront of keeping the world safe.”
Economic Strength of Relationship Outlined
Hunt went on to say, “Our economic relationship sees one trillion dollars (£800 billion) invested in one another’s countries and I will be looking to deepen it further during my time in New York.”
Hunt Emboldened by Recent Good News
The trip is made somewhat easier for Hunt, on the back of reports the UK economy has grown by 0.1% in February, and 0.3% in January. It’s likely the economy has emerged from recession now.
Hunt Will Celebrate Progress
When meeting with his international counterparts, Hunt is expected to urge people to stick by the UK, and explain the government’s economic plan is working.
Tory Party Economic Record Under Question
With the government borrowing at a record high, the highest post-war taxation levels ever, lagging production and slow growth, Hunt will have to work very hard to convince the voters that the government can be trusted on the economy.
Post Pandemic Recovery Slowest in G7
Whilst nobody really blames the Tories for the recession during COVID, the recovery has been the slowest in the G7. The US saw an increase of 6%, Canada 3%, France 2.4%, Japan 0.5%, Germany 0.2% and Italy 0.1%.
Economy In and Out of Recession
The recession during lockdown was inevitable, but the second recession is on the Tories. We were promised post-Brexit economic growth thanks to trade deals, but the reality is somewhat different.
Hunt Explains Stronger Economy Means More Global Help
He said that the UK’s “improving position” will allow us to support allies such as Ukraine and Israel during their struggles. With Ukraine in particular needing as much help as possible, global leaders will welcome additional UK support.
Promises for Additional UK Assistance
Hunt went on to say: “The UK’s resilient economy is on the up, and it is from this improving position that we can be the best partner possible to our friends around the world – including standing steadfast with Ukraine in its fight against President Putin and standing up for Israel’s security.”
Tories Hoping Emerging Growth Will Help Re-election
Hunt has been quick to jump on the news of a return to growth in the UK economy, using it as a measure of good fiscal management. He’s made claims it’s the government’s plan that has returned the economy to growth.
British Chamber of Commerce Dispute This
Analysis by the British Chamber of Commerce says: “the overall growth profile remains low, with a weak rebound in consumer spending as the main driver for any increase in GDP, and interest rates reducing only slowly.”
Hunt Has Pressured the Bank of England to Help Stimulate Economic Growth
As the economy slowly recovers, Hunt has hinted that the Bank of England could help the economic growth speed up by lowering interest rates.
An Interest Rate Reduction Would Be Welcome
In the run up to the election, the Tories will have everything crossed that the bank will reduce interest rates. This will be a big PR boost in time for the elections, but the size of the reduction is likely to be small at first.
Too Little, Too Late
Despite the recent better news on the economy, it’s likely to prove fruitless when it comes to ensuring Tory re-election. There has been too much mismanagement for too long.
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The post Special Friends: Hunt to Promote UK Economy to US, Despite Slowest Growth in G7 first appeared on Edge Media.
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