The UK is highly likely to see a lot of change over the next few months as Boris Johnson renegotiates the United Kingdom’s relationship with the EU. The economic and political foundations for what comes next for the UK are set to be laid by 31 December 2020 – meaning this is a huge financial year for Great Britain.
So what should we expect to happen in 2020? As we transcend into a new era, it’s important to be ready for what’s to come.
Value of the GBP
Those who have studied the trading industry in-depth may be able to benefit from Brexit, because now is the time to use knowledge for the future of the markets.
In particular, people trading forex (FX) will be keeping a close eye on the GBP, which dropped substantially when it was announced that the country was leaving the EU. However, as we get closer to a trade deal, it’s likely that the value is going to creep back up. Cryptocurrency is the most common form of currency trading at the moment, but it’s likely that people will still make some money as the GBP drops or spikes.
BusinessMag reported that according to Savills, house prices could increase by 4% in 2020. It’s likely that the housing market is going to bounce back after a difficult few years. With the uncertainty of Brexit, many people put their housing plans on hold as prices fluctuated. However, now that the plans to leave the European Union are in full swing, we may see a rise in the housing market once again.
It’s also likely that investment is going to increase – but only marginally. Business investment has been dropping ever since plans to leave the EU were announced. Although it’s unlikely to rise significantly again until plans for the EU are finalised, following an agreement to leave in December 2019, it’s likely to increase slightly.
Although it’s predicted that things will start looking up, FWI notes that regardless of how Brexit goes, experts have forecast that 2020 is going to be a slow year. It’s likely that people are going to be cautious when it comes to investment or making further deals until they’re certain on how leaving the EU is going to impact the country.
Tech remains on the rise
When it comes to investment, it’s not surprising that it’s likely to be tech which sees the most return within the financial sector. More and more companies are looking to invest in tech, and if you’re into trading, it’s likely that start-up companies will be ideal to place your bets on.
The country may have pressed pause on their investment options, but it’s looking like people are slowly gearing up to relaunch their financial plans as we head into the new decade. After months of uncertainty, Britain is hoping for further investment to launch the economy into a strong position, but be prepared for a period of caution and uncertainty in the interim.