British Economy Strongest in Six Years
British Economy Strongest in Six Years (Bloomberg)
Coming on the heels of a 0.8 percent expansion in the third quarter, England’s gross domestic product grew by 0.7 percent in the final quarter of last year, according to the Office for National Statistics. For the year, that growth contributed to a national economic expansion rate of 1.9 percent — the highest since 2007. In addition, Q4 growth was spread across all industries, instead of being concentrated in one or two high-performing sectors. This growth also led the British pound to a 2.5-year high against the U.S. dollar. So, where can investors look to take advantage of a re-emerging England? Well, looking ahead, the International Monetary Fund predicts U.K. growth of 2.4 percent in 2014, revising its prediction from last October. The best-performing sector of the economy recently has been Services, and within that, business services and finance. So for investors looking to get back into the United Kingdom, why not start with the same sector that has the most at stake in a growing economy — and one of the sectors leading America’s resurgence — financials. Who else is more concerned about making more money?