UK's Worsening Fiscal Deficit: Experts Suggest Leveraging Cheap Advantages to Attract Investment
UK Prime Minister Keir Starmer planned to cut funding for disabled and sickness benefits, but faced backlash. Ultimately, he retained the Personal Independence Payment (PIP) and only saved approximately £300 million. The UK is grappling with an aging population and dependence on welfare, and The Economist suggests the government should leverage relatively cheap labor and assets to stimulate economic growth.
Furthermore, the cost of UK bonds is among the lowest in advanced countries, attracting attention from investors. Since Brexit, the service sector has shown remarkable growth, significantly contributing to the economy. Experts emphasize that to stimulate economic growth, the government should avoid excessive borrowing and create an environment that enhances domestic worker wages.
