The UK is the only G7 economy with output below its pre-pandemic level. Economists at Rabobank expect the British Pound to remain under downward pressure over the coming months.

UK is the only G7 economy not to have recovered its pre-pandemic levels

“Currently, the UK is the only G7 economy not to have recovered its pre-pandemic levels. In addition to weak growth, its fundamentals are characterised by high inflation, low productivity, weak investment growth, post-Brexit trade frictions and a current account deficit.”

“We continue to expect EUR/GBP to edge to 0.90 by the middle of the year and see scope for further dips below GBP/USD 1.20.”