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The British pound has weakened considerably against the U.S. dollar in the wake of the Brexit vote. Will this cause Britain to enter into a recession?

The British pound has weakened considerably against the U.S. dollar in the wake of the Brexit vote. Will this cause Britain to enter into a recession?
  • Yes, recession likely

    Although for political reasons key politicians and figures in the British government would like to argue the case, at least semantically, it is almost inevitable that the crashing value of the British pound is likely to send the country into a second recession. Time will tell how severely the country is affected.

  • Yes, Britain can be headed towards a recession due to the diminishing pound.

    Yes, the weakening of the pound against the dollar will cause Britain to enter into a recession. With the U.S. dollar increasing in value after the Brexit vote, there will be dire economic impacts in Britain. For years, the pound has outweighed the dollar. This notable change will not only force Britain into a recession, but have long-lasting impacts on the global economy.

  • Yes, particularly against the Dollar, where higher oil costs, have an large impact on production and distribution costs for the UK.

    There are always two ways of looking at a "strong" £ and a "weak" £. A weak one would help exports whereas a strong £ helps suck in imports. A strong £ helps folks from the UK going on holiday abroad, a weak one encourages the foreign tourists to see the UK as a good economic destination.
    As for the 5-year trend, the £ is currently stronger against the € than for most of that period, bar a rise during the whole of 2015.

  • Yes, this could cause Britain to enter a recession.

    The British Pound has lost substantial value to the U.S. dollar. This steep loss in purchasing power will hurt the economy of the United Kingdom. British consumers will not be able to afford to purchase as many goods and services, because the value of their currency has fallen so much. In fact, the U.K. could enter a recession if the Pound continues to lose its value.

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