GDP revised upwards but “UK economy has some major headwinds to face”

- City expert says the pressure on businesses and consumers will not abate-

Date: May 25, 2010

The UK economy grew more than expected in the first quarter of 2010 according to official statistics released this morning. An upward revision to 0.3% from the lacklustre first estimate of 0.2% gave the pound a slight boost – up 0.04% against the euro to 1.1671.

Mark Bolsom, Head of the UK Trading Desk at Travelex Global Business Payments comments, “Our new Coalition government will welcome this news but growth remains extremely weak and tenuous. With the worry of contagion from the financial crisis in the Eurozone and swingeing public spending cuts already underway, economic recovery remains fragile.”

Bolsom concludes, “The UK economy has some major headwinds to face this year and the pressure on businesses and consumers will not abate.

“With a daunting level of national debt, rising inflation and low interest rates, I don’t think the economy will grow much past 1% this year. The real crux of whether we’re going to carry on growing depends on the extent to which the forthcoming austerity measures contract the economy. UK economic growth will be determined by events on the 22 June.”

- Ends -

Media enquiries
Jessica Buttress
Head of PR for Travelex Global Business Payments UK
0208 415 4204
077954 497129
Jessica.buttress@travelex.com

Notes to editors
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About Travelex:
Founded in 1976, Travelex is the world’s largest non-bank foreign exchange and payments specialist; with operations across four continents and 6,000 employees worldwide.

Travelex holds key positions in its three main areas of activity: Global Business Payments (TGBP, which includes Travelex Personal Payments), Currency Services and Card and Mobile Payments. Every year, more than 35,000 corporate clients and 30 million customers trust Travelex to manage their foreign exchange requirements.

Recently recognised by TowerGroup research as Industry Leader for payments innovation for SMEs, Travelex currently handles international payments worth £40 billion annually for over 750 large corporate and financial institutions.

Visit www.travelexbusiness.com/uk for more information or email the press office at jessica.buttress@travelex.com