Weaker pound 'helping UK economy'

Britain’s economy stands to benefit from the weakening of sterling on the currency markets, a professor at the London School of Economics has said.

Professor Iain Begg pointed out that the trend would lead to more people taking a holiday in the UK this summer, providing an economic boost as a consequence.

The academic also welcomed news that GDP growth had been registered in France and Germany for the second quarter.

Both European economies grew by 0.3 per cent over the three-month period.

The pound dropped from over $2 against the dollar last summer to a 24-year low of $1.35 in January, reflecting investors’ concerns about the UK’s economic prospects.

Sterling has since strengthened to around $1.65.

Professor Begg said: ’I think the weak pound has already helped the British economy and we’ll see quite an impact from that over the next quarter one reason being that consumers in Britain aren’t taking holidays overseas so they are spending money at home.’

Referring to prospects of an economic recovery, he added: ’We can get the champagne out [of] the cellar but it might be a bit early to be taking the corks out.’ADNFCR-2318-ID-19315525-ADNFCR