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London
CNN Business
—
The decision by Jeremy Hunt, the new UK finance minister, to jettison the bulk of Prime Minister Liz Truss’ much-maligned plans to boost growth has come as a huge relief to investors, easing their worries about the sustainability of government finances.
But even if “Trussonomics” has been tossed out and a total market meltdown avoided, the near-term prospects for Britain’s economy look increasingly wobbly.
A recession stretching through the winter looms. Policymakers were facing tough choices even before Truss unleashed financial market chaos. Now, with the government’s credibility tarnished, they’re in an even worse predicament.
“The last month has been like a bad dream, but the situation prior to the last month was not a good dream,” said James Athey, investment director at Abrdn, an asset manager.
The sudden reversal of…
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