Whisky: Britain’s booming industry
Facts:
1) The value of the pound fell with respect to European and US currencies.
2) Last month, the pound weakened relative to the dollar until $1.035, a record low against the dollar.
3) According to the Scotch Whisky Association, around 90% of the whisky produced in Scotland is exported.
4) Whisky’s exports from Britain increased by 10.5% (from July 2021 to July 2022).
Analysis:
1) Due to the pound’s depreciation, the demand for Britain’s products in the U.S. and Europe increased.
2) Almost all the raw materials needed to produce whisky are made in Britain. Hence, the weakening of the pound does not affect the producer’s costs. Therefore, the current economic situation is beneficial for the growth of the whisky industry.
Inspired by The NYT
