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(AOF) – The British currency fell 0.80% to 1.1377 dollars, its weakest level since 1985. The pound sterling is weakened by the strengthening of the fears of recession, which are fueled by a sharper decline than expected retail sales. The latter fell by 1.6% in August while economists polled by Reuters on average expected a decline limited to 0.5%.

“All major sectors (food stores, non-food stores, non-store retail and fuel) fell during the month; this last happened in July 2021, when all legal restrictions on the ‘hospitality have been lifted,’ underlines the British Insee.

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In early August, the Bank of England was the first major central bank to anticipate a recession. According to its forecasts, British GDP should thus decline each quarter, from the fourth quarter of 2022 to the fourth quarter of 2023, before returning to growth, which should be weak, according to historical standards. The United Kingdom is expected to experience a contraction of 1.5% in 2023 and 0.25% in 2024.

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