Pound dropped slightly below $1.3 today on Brexit jitters and on news the British economy grew by only 0.6% during this summer, compared to 4.2% for America.
The Office for National Statistics says this is the highest level of growth since 2017 after the British economy grew by just 0.2% during the first quarter of 2018 and 0.4% during Spring.
Considering inflation, Britain is practically seeing negative growth as prices/inflation has increased by about 2.5% during summer, slightly down from 3% previously.
With growth at just 0.6%, that means Brits in general are about 2% worst off this year while their cousins over the pond are enjoying a roaring 20s of sorts.
Manufacturing has contracted even as exports become a lot cheaper due to a plunge in the value of the pound following the Brexit vote in 2016.
Services are performing a bit better, but most of the growth is coming from construction following a significant housing shortage especially in London and other British cities.
However, the results are overall pretty dismal in the current global economic situation. Only Russia is growing slower than Britain. The significant pound devaluation by the markets should have given at least some boost, but it apparently hasn’t.
There is however some sort of good news in that the Brits have lowered government debt borrowing to now just 2% of GDP, although total debt of nearly $2 trillion does keep increasing to now 85% of the GDP.
Boris Johnson, former Foreign Secretary and now potentially a leadership candidate, has suggested some of this reduction in borrowing should be used to cut taxes and give the economy a Trump style boost.
Theresa May, however, the current Prime Minister, seems more focused on hanging on rather than any sort of vision for invigorating Britain after years of sluggish growth.
That may mean with months to go now until the March deadline for a Brexit deal, both the pound and the economy might be wobbly as Britain nears one of its biggest decision in almost a century.
But how that will go as far as its financial centre is concerned, its fintech crown, and this space more specifically, remains to be seen.