It didn’t take long for the UK to dig its way into the hole
Skerdian Meta • 1 min read
Once upon a time not that long ago (just two months actually) the economy of the UK was in wonderland. Well, not exactly but relatively compared to the rest of the world. Remember, japan has been in recession for quite some time, Canada has been in recession for most of last year. Even in the US, EU and China there were and still are many sectors of the economy still in recession. Only the UK economy had no sectors in recession domestically and was performing quite well as a whole.
But, some politicians in the UK went on a flash power trip and led Britain to Brexit. They had their moment of glory but they dug the biggest hole for the UK economy. I can´t say they dug their own grave because at some point the economy will resurface again, but how long will it take? Reuter just published a poll where most economists see the UK economy contract by 0.1% in the last two remaining quarters.
GBP/USD is finally getting comfortable below 1.30
Remember that two consecutive contracting quarters means recessions, so that makes it officially a recession. Just two months ago it was at the top of the developed economies, while now the UK economy stands way down at the bottom and in my opinion it will get worse. This makes you believe that people are ready to do whatever it takes for 5 minutes of fame, even destroy their country. Anyway, the poor GBP keeps feeling the weight on its shoulders as it makes its home below 1.30.