City expert says revised GDP figure is “historical…we are not out of the woods yet”
London - 26 February 2010
New figures out today confirmed a much better than expected GDP figure of 0.3% for the fourth quarter of 2009. Most economists had estimated a more conservative growth to 0.2%, although poor business investment figures released yesterday had dampened expectations of an upward revision.
Mark Bolsom, Head of the UK Trading Desk at Travelex, the world’s largest non-bank FX Payments specialist, said, “Although this is good news, that figure is now historical –relevant only to the last three months of 2009. Since then, there has been a string of really poor data out. January’s retail sales were dire, claimant count has shot up and our national debt has increased – there is more concern in the markets about what is going on now than a revised GDP figure. That’s why the pound dropped in response to what is, in theory, good news.”
Bolsom continues, “The upward revision to our GDP does not mean we are out of the woods. We’re still way behind other global economies in the speed of our recovery and investor sentiment remains negative, as the political and economic future of the UK remains uncertain.”
Sterling dropped in response to the news. Against the euro it fell 0.31% to €1.1212. Cable fell 0.07% to $1.5250.