The Pound Sterling is heavily traded against the U.S. dollar and Euro but it has a minimal presence against other currencies. In the recent past, the Pound has acted like a roller coaster due to British inflation and labor problems. Currently, Great Britain has a large trade deficit but short-term and long-term flows of capital are offsetting concerns a deficit would bring.
The United Nations Conference on Trade and Development (Unctad) says foreign direct investment into Britain last year exceeded that into China. Long-term capital outflows from Britain were also enormous.
GDP growth in 2004 was over 3.0% per annum, which was higher than that of Germany and France. The GDP grew by 0.2 per cent in the first quarter of 2005.
Saturday, July 4, 2009
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