Gkionakis: Brexit's Loss of 'Hot Money' Hurts Pound

The video discusses the UK's economic outlook, focusing on GDP growth and the widening current account deficit. It highlights that the deficit is driven by primary income balances rather than trade. The impact of Brexit on financial flows is examined, noting the uncertainty and potential reversal of portfolio flows, which could negatively affect sterling. Inflation concerns are addressed, emphasizing the challenges of imported inflation and the Bank of England's approach to managing it.

What factors are contributing to the current account deficit in the UK?

How has the Brexit referendum impacted the UK's current account deficit?

What are the potential risks associated with portfolio flows in the UK economy?

What uncertainties are present regarding the UK's economic situation in the next few years?

In what ways is inflation expected to affect the UK economy in the near future?