The British newspaper The Guardian, one of the most authoritative newspapers in the world, has informed the readers about the losses that the British economy suffered in just one week of extreme cold in the island state. The figures are impressive – the loss has amounted to at least a billion pounds sterling (this is 1.4 billion US dollars). Probably, one of the serious consequences of the prolonged winter will be a slow-down of GDP growth during the first months of 2018.
Experts point out that the consequences of bad weather will affect the construction sector most of all (many construction sites were literally “frozen”). What is more, some other sectors will suffer too, i.e. the transport industry (as ridership has significantly decreased for obvious reasons) and the retail sector (because people don’t think about shopping and buy only essential items).
Investors should expect a depreciation of the UK currency due to such depressive forecasts.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade