Is the recession really over ? Exchange rates still fragile

News Sponsored by The Coral Lake & Beach Resort

Unbelievable prices at award winning resort

The Coral Lake & Beach Resort

With the news that the UK finally emerged from the recession this morning after 4^th quarter GDP figures from 2009 reported growth, some may be tempted to assume that it’s business as usual for UK plc and that sterling is destined to gain strength. And maybe even that credit is due to the government for providing all the extra cash so banks could stay afloat and provide the financial services that kept the economy on idle throughout the recession.

 

But, and it’s a big but, if you look beneath the surface at the bigger picture, overall it still looks very fragile and uncertain.

 

Firstly, we only just managed to scrape the positive figures required to technically end the recession with a 0.1% growth reading. This is only the preliminary reading; there are 2 more readings to come this quarter on or around the 26th of both February and March. This in turn leaves the door open for a downwards revision of the figures putting us right back in recession for the 7^th straight quarter.

 

Secondly, because of the VAT hike on January 1^st and the soon-to-end car scrappage scheme, it is very possible that the growth reading is in fact only down to a surprise spike in activity rather than sustained growth as people rush to take advantage.

 

The effect that this has for sending money abroad is that there is still uncertainty for the future of the Pound as the view on the economy remains shaky at best. This means that the chances of sustained Sterling strength are still quite low and if the GDP figures are revised downwards in February or March then they will remain low for quite some time.

 

So although it is good news that the recession is ‘over’ for now, I think we still have a very slow and difficult recovery ahead of us. Securing exchange rates on forward contracts can eliminate the risk of currency fluctuations. Speak to a specialist FSA-regulated currency company to find out more.

                                                                                                                                               

  © International Property News by HomesGoFast.com

Overseas Property For Sale in France

Other Overseas Property Destinations...

  Spain   France   Portugal   Bulgaria   Turkey   Cyprus   Greece   Italy   South Africa   Croatia   Egypt   United States   Morocco   Germany   Dubai   Dominican Republic   Hungary   Cape Verde   Brazil   Thailand

 

 

Find overseas property

Real estate guides, luxury homes, property news, investment properties, real estate agents & advice for buying property abroad.

 

Africa and the Middle East

Americas

Bahrain	Cape Verde	Dubai	Egypt		Argentina	Belize	Brazil	Canada
Gambia	Jordan	Mauritius	Morocco		Costa Rica	Mexico	Nicaragua	Panama
Qatar	Saudi	South Africa	Tunisia		Paraguay	Uruguay	Venezuela	USA

 

Asia Pacific

Caribbean

Australia	Cambodia	Fiji	India		Antigua	Anguilla	Barbados	Bahamas
Indonesia	Japan	Malaysia	New Zealand		Caymans	Dom Repub	Grenada	Guadeloupe
Philippines	Thailand				Jamaica	Antilles	St Kitts	St Vincent
					St Lucia	Turks Caicos	Trinidad	Virgin islands

 

Central and Eastern Europe

Western Europe

Albania	Bulgaria	Croatia	Czech Rep		Austria	Cyprus	Finland	France
Estonia	Hungary	Latvia	Lithuania		Germany	Gibraltar	Greece	Malta
Poland	Montenegro	Romania	Slovakia		Netherlands	Italy	Ireland	Portugal
Slovenia	Turkey	Ukraine			Spain	Sweden	Switzerland	UK