By Jonathan Davies
The UK economy is a timebomb waiting to explode after the general election, according to one of the City's leading commentators.
Albert Edwards, head of global strategy at Société Générale, is known for his negative outlook and has criticised the government for “grotesquely wide deficits”.
Insisting this views are politically neutral, Mr Edwards wrote in a note for Société Générale: "As the UK general election rapidly approaches, we take a look at the UK economic situation. We say what we see, and after five years of the Conservative and Liberal Democrat coalition government, the UK economy looks like a ’ticking time bomb’ waiting to explode after the election.”
Mr Edwards explained that the UK economy could be in a worse situation after the election than during the financial crisis.
“At least back then [2008] the UK was not alone in reaping the sour fruits of economic mismanagement — the US and the eurozone periphery were all sailing in similarly unstable, leaky boats. But now the UK economy stands alone, up to its eyeballs in macro manure. Eventually the stench will fill the nostrils of currency markets with the inevitable result — another sterling crisis." he said.
His comments come after the Bank of England last week revealed that the deficit could put-off financial markets from dealing with the UK.
