12th July 2017

Economic progress under Theresa May

There has been quite drastic changes in the economy and the value of the pound in the past year following Brexit referendum and the general election,

On the night of the Brexit the value of the pound dropped dramatically. Many economists were expecting the economy to enter recession.
In July 2016, some industrial surveys identified a slump in activity. However, the Office for National Statistics said there was reasonable growth in the last two quarters of 2016.
Inflation has since decreased to nearly 3% while GDP growth dwindled to 0.2% in the first quarter of 2017.
It appears therefore that the Brexit-related slowdown has finally arrived.

The value of the pound seemed to steadily increase from April when Ms May announced the general election. Since the inconclusive election result on 8 June, currency has not been consistent, initially dipping then picking up again.

The value of the pound is being supported by the view that the Bank of England may relatively soon raise interest rates to curb inflationary expectation.

Source: The Independent