It’s been well documented that, as well as taking a toll on the health of the public, coronavirus has also affected the health of our economy. This was highlighted yesterday morning when the latest GDP figure for May was released, showing that the UK economy grew by just 1.8%.
May’s figure followed declines in March and April, and the economy is now almost a quarter smaller than it was in February. Sterling, therefore, slipped against both the pound and the euro and is still looking weaker this morning.
Despite this, there are hopes that June’s figure will show a significant improvement due to the reopening of more sectors. The government is certainly trying to encourage us to get out and about, with incentives to eat out and spend money. So far, many have relished the chance to experience the joy of a pub garden or a day out at the shops, and this renewed freedom is predicted to help the economy.
Face masks will be compulsory in shops in England from the 24th of July, and this added safety measure should, in theory, encourage people to use our high streets.
Despite expectations of economic recovery, there’s no knowing where sterling will move in the coming weeks and months, as many factors are influencing the pound at the moment, including Brexit.
After concluding in London last week, Brexit talks have continued in Brussels. Any positive developments this week could provide some support for the pound. So far, there have been hints of a small amount of progress, although significant divergences remain.
Whichever way the talks go, however, it looks like the government are determined to end the Brexit transition period at the end of the year. If you’re looking to buy a property overseas, you could be in a position to do so before any new rules and regulations come in.
If you’re thinking about re-starting your plans, why not speak to your trader on 020 8108 5337. You can also lock in today’s rate with a forward contract.
