Weinberg: U.K.'s Current-Account Deficit 'Unsustainable'

The video discusses the UK's current account deficit, highlighting its persistence before, during, and after Brexit. It explains how a 10% devaluation affects trade, leading to a widening deficit. The challenges in attracting capital flows due to economic and political turmoil are addressed, along with potential impacts on foreign direct investment and sovereign wealth funds. The discussion emphasizes the broader economic threats facing the UK.

What is the approximate percentage of GDP that the UK's current account deficit represents?

• 5%

• 12%

• 7%

• 10%

What economic event is mentioned as a persistent issue affecting the UK's current account deficit?

• The 2008 Financial Crisis

• The COVID-19 Pandemic

• Brexit

• The Eurozone Crisis

What is a potential consequence of the UK's widening current account deficit?

• A housing market boom

• A sterling crisis

• Increased foreign investment

• A trade surplus

Which region's sovereign wealth funds are discussed in relation to investment flows into London?

• Europe

• North America

• Asia

• Middle East

What has caused a reduction in capital flows from oil-producing countries to the UK?

• Political stability

• Rising interest rates

• Global commodity price crash

• Increased oil production