A stronger pound will keep Britain ticking over

There’s not much about the British economy to give anyone cheer at the moment. But there is one positive sign: the pound is getting stronger. And with a stronger pound, says Matthew Lynn, we might just pull through.

There's not a great deal about the British economy to make anyone cheerful at the moment. It has slipped into a double-dip recession. The downturn that began in 2008 is now the longest of the last 100 years. Unemployment is still rising and the government's finances remain a mess. The eurozone, our largest trading partner, looks set for another chaotic summer of summits, arguments and bail-outs.

There is one positive sign, however. The pound is getting stronger. For the last few years the British have had to get used to wincing every time they ordered a cup of coffee in France or Italy or any of the other European countries they might visit over the summer. This year they should be able to buy a meal without having to put in a call to their mortgage broker first.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.