There are reasons why the political uncertainty triggered by the hung Parliament result won’t weigh too heavily on GDP growth. After all, the UK economy has proved resilient to recent bouts of political uncertainty and, so far, there are few signs of a tightening in credit conditions that could cause a slowdown in growth.
Past evidence suggests that a Government with only a small majority wouldn’t necessarily weigh on the economy either. However, if the small majority forces the Government to move its fiscal policy stance closer to the proposals of other parties, then there might be larger effects on the economy.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services