Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Could the United Kingdom become an emerging market? | CNN Business |

Bank of America suggested in a recent note to clients that it may be time to treat the British pound as an emerging market currency, citing Brexit and worsening debt dynamics as a result of Covid-19.

"We believe [the pound] is in the process of evolving into a currency that resembles the underlying reality of the British economy: small and shrinking," wrote BofA strategists Kamal Sharma and Myria Kyriacou.

But what the comparisons make clear is that investors are bracing for a world in which the United Kingdom's standing is diminished.

For years, Britain has carried a sizable current account deficit, which means it spends more on goods, services and investments abroad than it brings in at home. That's now coupled with a worsening fiscal deficit as the country borrows huge amounts to finance its pandemic recovery plans. As of May, Britain's debt was bigger than the size of the entire economy for the first time since 1963.

ONS: Public sector finances, UK: May 2020

by Oui on Sat Jul 25th, 2020 at 07:58:03 PM EST

Others have rated this comment as follows:


Top Diaries

Italian government collapse

by IdiotSavant - Jan 15

A Long War?

by Frank Schnittger - Jan 8

Israel and A Presidential Election

by Oui - Jan 14

Coup Attempt in USA?

by Frank Schnittger - Jan 6

Occasional Series