A weaker British pound won’t just help the nation deal with its debt burden in ways that Greece can’t.
It could even make the country’s manufacturing goods more competitive on the world stage.
Moreover, contrary to common belief, manufacturing remains a larger part of the U.K. economy than finance:
Manufacturing still accounts for a surprisingly large amount of the economy – about 12pc, a larger share than financial services’ 9pc. People find this surprising, because they do not come across many UK-manufactured products in their daily lives. By contrast, they cannot fail to notice the dominance of German and Chinese producers in many fields. The UK has quasi-dominant positions in only two large manufacturing sectors, namely pharmaceuticals and aerospace. But we have many niche producers spread over umpteen sectors. And the UK is still the world’s sixth-largest producer of manufactured goods.
Since about 45pc of all of UK manufactured goods are exported, the pound is critical. For more than a decade it was much too high. It now looks to be at a competitive level. This means that producing UK goods for export, and to replace imports, is more profitable than it has been since the period after we came out of the ERM in the early 1990s.
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