UK Falling Back into Recession as Sterling’s Value Continues to Drop
Listed under: News
Published: Monday, March 22, 2010
Britain could face further setbacks over the next year as fluctuations in exchange rates see the pound become ever-weaker against the dollar and euro.
According to the latest statistics, the value of sterling has fallen significantly in the run up to the general election, dropping 2.4 cents, 1.5%, against the dollar, and one cent, 0.9%, compared to the euro.
The results have led to the Bank of England's policymaker warning that the UK could fall back into recession this year and reveal that while progress has been made, economic recovery is likely to be far slower than initially expected. Uncertainty about who will win the election and increased anxiety about plans to cut Britain's budget deficit – which is currently one of the highest in Europe, amounting to 12.6% of the UK's GDP – are thought to be two of the greatest factors weighing most heavily on the value of the pound.
Commenting on the findings, the Bank of England policy committee member, Andrew Sentance, says, “You have to recognise there is some risk of a double dip, but that's not the central forecast.”
How has the falling value of the pound affected your business? Email your thoughts to .(JavaScript must be enabled to view this email address)
According to the latest statistics, the value of sterling has fallen significantly in the run up to the general election, dropping 2.4 cents, 1.5%, against the dollar, and one cent, 0.9%, compared to the euro.
The results have led to the Bank of England's policymaker warning that the UK could fall back into recession this year and reveal that while progress has been made, economic recovery is likely to be far slower than initially expected. Uncertainty about who will win the election and increased anxiety about plans to cut Britain's budget deficit – which is currently one of the highest in Europe, amounting to 12.6% of the UK's GDP – are thought to be two of the greatest factors weighing most heavily on the value of the pound.
Commenting on the findings, the Bank of England policy committee member, Andrew Sentance, says, “You have to recognise there is some risk of a double dip, but that's not the central forecast.”
How has the falling value of the pound affected your business? Email your thoughts to .(JavaScript must be enabled to view this email address)
