Uncertainties over how the U.K. would leave the European Union have sent the British pound down by around 5% this year.
when a majority of lawmakers voted to take control of parliamentary business from the government, leading to a possible snap election and further delays to Brexit.might be more harmful to the British economy because businesses can't plan for the future, according to Bob Baur, chief global economist at Principal Global Investors.lower by around 5% this year."Squawk Box,"
referring to the June 2016 referendum which saw 51.9% of voters backing the U.K.'s decision to leave the European bloc. "Some kind of exit from the European Union will at least give businesses some certainty, and that's what's been the problem," added Baur. "I think even if there's a problem with the economy for a short time, that certainty is going to help businesses plan for the future, be able to invest, be able to hire. So, I think that's a hugely positive thing that people are missing.
He noted that Britain's unemployment rate has remained low and wages have been rising — which indicate the economy is in a good standing. A no-deal Brexit — which refers to the U.K. leaving the EU without a trade agreement — is seen by many in Parliament as a scenario to be avoided at all costs. Without a deal, the
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