Kikapu wrote:Paphitis wrote:miltiades wrote:Looks as if the fat lady maybe starting to sing anytime !!
The pound plummets to below 1.08 euros as new figures released show GDP at its lowest since 2012.
That doesn't mean anything and as I told you before, a lower devalued currency is good for exports.
In fact some countries actively seek to devalue their currency for this purpose. China and USA are trying to devalue their currency because of their trade war. Australia is currently embarking on a sustained program of AUD devaluation to stimulate export earnings as well.
What the British are doing here will be remembered for many decades. They are making a run for it and I guarantee you than in 20 years from now, they won't be looking back. The British are not some plebs. They can stand on their feet and they have solid friends they can draw from if worse comes to worse.
Paphitis, China can afford to devalue it‘s currency to increase exports. For one, they export more than they import, and secondly, which is a major plus for China, it‘s vast majority Chinese can live on little, mostly home produce items and food. It is not like the poor people of China are importing expensive foreign goods. Take a look at the Chinese GDP per capital vs. the UKs. There is no comparison. Chinese can survive on a bowl of rice. Not the same with the Brits, the Aussies or the Yanks.
Britains GDP is much larger than China's Kikapu. You need to look at GDP per capita.
By comparing the total GPD of a country of 1.5 Billion people to that of 70 million people isn't a valid comparison.
Britain also exports a great deal and they make better cars and better aircraft and have a better arms industry than the Chinese do.