IMF warns again on UK economy
The International Monetary Fund (IMF) has reiterated its 0.2% growth forecast for the UK economy in 2010 although there is a stark warning that the position could deteriorate very quickly unless lending activity improves. This is not the first time that the IMF has criticised the UK authorities and the UK financial sector for a lack of follow-through on various lending promises. However, while many financial institutions argue that demand is not there at the moment, there is no doubt that large numbers of UK businesses are struggling and UK consumers find credit difficult to obtain.
While the UK government seems to respond to various IMF accusations and suggestions as and when it suits them, there needs to be some formal response to this accusation of subdued lending figures. When you consider the billions of pounds which has been injected into the UK financial sector, in the hope of increasing lending, it has to be said that so far it has ultimately failed. However, it was always suggested that it would take a significant length of time before the financial sector benefited from these capital injections although time and patience are now starting to run out.
Quite why the IMF seems to have such a negative opinion of the UK is a mystery with every positive report issued seemingly followed by two more negative ones in the background.
Share this..
Related stories
UK savings ratio highest for six years
It has been revealed that the average UK home is now putting aside 5.6% of monthly income for savings, against just 1.7% at this time last year. While on the surface this is obviously a very positive move, it does appear that many are saving for the future because they are unsure about job security, future income and the cost of living. On the plus side, the amount of debt being taken on by UK con...
Read MoreWhy did the Competition Commission lose an appeal against PPI?
The very fact that the Competition Commission Tribunal has overturned a recent judgement by the Competition Commission regarding PPI (payment protection insurance) has caused ripples across the whole financial sector. The case set out by the Competition Commission seemed to be fairly straightforward in that many people who agreed loans with their banks and other financial institutions were apparen...
Read MoreBank unveils rights issue plans
Barclays is to sell £4.5 billion of new shares in order to improve its balance sheet.The bank revealed today that overseas investors would take up the bulk of the stock offer, known in the industry as a "rights issue".According to the bank's chief executive, John Varley, the extra revenue created by the sale would allow Barclays to offset losses from the credit crunch and acquire new businesses i...
Read MorePolitical leaders agree to general election TV debates
In a sign that the UK political arena is beginning to reflect the US political scene more and more, it has been revealed that Gordon Brown, David Cameron and Nick Clegg have all agreed to participate in three live TV debates ahead of the general election. Despite the fact that Gordon Brown has refused point blank in the past to become involved in live TV debates with his major competitors, many be...
Read MorePostal strike set for 22 October
Despite the fact that a number of localised strikes have been occurring on a regular basis over the last few months, the official union strike at Royal Mail is set to start on Thursday, 22 October. There will be a number of strikes between 22nd of October and the Christmas period which are ultimately designed to wreak the greatest havoc and cause maximum impact. However, the Royal Mail management...
Read More