Update: October 2017 – London Offices
The IMF’s latest growth forecasts suggest the global economy could be getting back to normal after a decade of difficulties following the financial crisis. The UK, however, remains stuck in second gear, reflecting the squeeze in consumers’ real incomes and the ongoing uncertainty over the Brexit negotiations.
Much will depend on how these negotiations develop, but there are some green shoots of optimism that sufficient progress will be made at the next meeting in December. With the Bank of England becoming significantly more hawkish over UK inflation and spare capacity in the economy diminishing, it seems almost inevitable that rates will rise to 0.5% before the end of 2017.
Despite fears surrounding the outcome of Brexit, London will almost certainly remain a key global financial centre and develop as one of several European hubs for the growing tech sector. Its prime markets will therefore benefit from new domestic wealth generation, as well as attracting wealthy international buyers.