Forties People

An expert has moved to assure investors in the UK that the country is not on the verge of a Greek-style economic downturn.

The Eurozone, with help from the International Monetary Fund, is expected to announce its plan of action to deal with Greece's financial meltdown, which has seen inflation rates soar in the nation shortly. There has been a fear amongst British investors that a similar crash could soon emerge in the UK market with fears continuing that the country could have its AAA credit rating stripped down.

But Mark Bolsom, a City expert on the trading desk at Travelex UK, believes that such dramatic problems are unlikely to occur in Britain due to several factors that differentiate the two nations' economic environment.

"It is important not to scaremonger or overstate the likelihood that this will happen in the UK. Firstly, the pound gives the UK an important advantage. If crisis does hit, we can devalue our currency in order to boost exports," he said.

"Secondly, our debt looks very different to Greece's - the UK's stock of debt is a lot lower than theirs and is older and thirdly, attitudes towards tax are very different in both countries."

Posted by Daniel Frost.