Gold for the UK economy

01/08/2014

As has been much trumpeted by the government and its media advisers, UK economic growth is projected to be the strongest among all developed countries this year.

Last week the International Monetary Fund revised its projection for UK economic growth in 2014 to 3.2%, the fourth consecutive time it has raised the number. This comfortably outdoes all other developed nations, including the perennial powerhouses of the USA and Germany, projected to grow at just 1.7% and 1.9% respectively.

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This is not a one-year only phenomenon either with the IMF predicting a robust 2.7% in 2015 for the UK.

You may have noticed you are also getting more Dollars and Euros for your Pound when going on summer holidays. As the British economy strengthens relative to global peers so does the currency and the pound has made big gains on the US dollar in particular. The expectation of a near term interest rate rise is also pushing up sterling.

This does cause a concern for UK companies who have overseas operations, as earnings drawn overseas in dollars and other currency become lower than before when converted back into sterling.

If you would like to discuss your personal financial planning situation, please contact us >>

Written by Fiona Ruck | Financial Adviser

Fiona joined Mantle FInancial Planning in September 2013 Read more >>

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