Goldman Sachs urges investors to buy British shares as they predict election and Brexit will bring a boost to UK economy
- Economists at the investment bank have upgraded UK growth forecasts for 2020
- They cited less Brexit uncertainty promised public spending by political parties
- Banking group recommending investors buy UK stocks as they take a confident stance on the UK economy for the coming year
Investment bank Goldman Sachs has urged investors to buy British shares as they predict a boost to the economy in 2020.
Economists at the bank have upgraded UK growth forecasts for next year, citing less Brexit uncertainty, and massive promised public spending by political parties.
UK-based stocks have under-performed since the Brexit referendum almost three and a half years ago.
But the banking group is recommending investors buy UK stocks as they take a confident stance on the UK economy for the coming year.
Economists at the bank have upgraded UK growth forecasts for next year, citing less Brexit uncertainty, and massive promised public spending by political parties
A spokesman for the banking group told The Times said: ‘First, a resolution of Brexit-induced uncertainty is likely.
‘Clarity on the UK’s terms of exit should emerge faster under a Conservative government than a Labour government, although a Labour administration would introduce a plausible path to Remain.
‘Second, a sizeable fiscal impulse is on the horizon. Both parties plan to increase government spending substantially, with Labour proposing a larger increase in public-sector investment than that envisaged by the incumbent Conservative administration.’
The analysts added that the threat of a no deal Brexit was in decline and this would help the economy ‘rebound strongly.’
The investment bank thinks the economy will grow at a rate of 2.4 per cent in the second half of next year.
And at a rate of 2 per cent in 2021, higher than the 1.6 per cent it had originally predicted.