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Britain's election result surprisingly business-friendly

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Staff writer ▼ | May 9, 2015
The British Conservative Party won the 2015 general election with 331 seats of the House of Commons on Friday, giving them a slender majority.
David Cameron
Politics and business   UK economy expected to expand
Some economic experts and research institutions said the result of the election was good for the country's economy as it avoided a messy coalition.

"The UK general election result is a surprisingly market-friendly outcome and removes the risk that the economy suffers a prolonged period of political uncertainty," said Vicky Redwood, the chief Britain economist of Capital Economic.

Bolstered by the election result, FTSE 100 Index, British benchmark stock market gauge, Friday increased sharply by 2.32 percent, or 159.87 points, to 7,046.82 points.

"The UK's fundamentals otherwise look pretty good. Overall, then, we remain pretty optimistic about the economic outlook," Redwood added.

Kathrin Muehlbronner, Vice President-Senior Credit Officer of Moody's, was also bullish about the British economy.

"The outlook for the country's public finances has improved irrespective of the government's composition: following several years of very subdued real GDP growth, growth accelerated significantly in 2014," said Muehlbronner.

"We expect the economy to continue to expand at rates above 2 percent for the next several years, as the effects of the financial crisis fade," said Muehlbronner.


 

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