The British Chambers of Commerce (BCC) has stated that the UK will avoid a double dip recession but that growth will slow dramatically and worse than forecasted. While The BCC did state that the UK will avoid recession it commented that UK unemployment is likely to rise and debt levels would remain concerningly high painting a fairly gloomy picture of the UK economy. The BCC stated that the current issues in the Eurozone were going to create challenges for British exporters with Europe one of the UK’s biggest trading partners and so while any issues in Europe could lead to short term Euro weakness it could also have a damaging effect on the UK economy and therefore Sterling exchange rates. It appears a lot of work will be needed if we are to avoid a dreaded recession and with the Budget due on 21st March Chancellor George Osborne could have some tough months ahead.
Meanwhile in Europe Spain have stated that they are expected to miss its budget deficit target for this year the same weekend EU leaders agree a new treaty to enforce budget discipline. Spain’s target for the year was 4.4% but they are expecting it to reach 5.8% this year but the Spanish government still claimed this to be “significant austerity”. So, if Greece manage to get through there current financial difficulties it looks like there could be other countries to follow suit. If you need to make a money transfer and are looking for exceptional exchange rates make sure you speak to us today. Our experienced currency brokers can help ensure you are kept up to speed with all the latest market data so you can make the most informed decision on when to trade.