UK economy falls flat
The Organisation for Economic Co-operation and Development (OECD) has today poured cold water on the idea that the UK economy is on the verge of recovery. The OECD believes that the UK economy will fall by 4.7% this year which is a significant increase on its earlier forecast of 4.3%. However, when you consider that the UK government is forecasting a fall of just 3.5% in 2009, the UK economy could be very volatile, not something which UK consumers and UK businesses will like to hear.
As a consequence, the OECD, which believes the likes of the US and the Eurozone will move away from the recession in the third quarter of 2009, believes the UK will lag the ongoing worldwide recovery. As ever, one of the main reasons put forward regarding a potential lag in the recovery of the UK economy is the precarious financial situation regarding public finances. With UK net debt having already topped £1.2 billion and set to go higher and unemployment forecast to go beyond 3 million, it is easy to see why the UK may potentially be slower to the recovery phase than many others.
The OECD has been very critical of the UK government over the last few months and this constant reiteration of its stance on the UK economy is starting to annoy the UK authorities.
Share this..
Related stories
Greek economy on verge of meltdown
Unemployment in Greece has soared to 10.6%, the highest in five years, compared to 7.8% a year earlier. It has also been revealed that civil servants in Greece are set to join the private sector strike on 24 February in protest at spending cuts in the Greek budget. At the moment the Greece authorities are being pulled from both sides with the European Union demanding a massive reduction in spendin...
Read MoreGordon Brown calls on Bank of England to reduce base rates yet further
Gordon Brown has put himself in the rather awkward situation of seemingly trying to dictate the monetary policy of the Bank of England with a call for further UK base rate cuts in a speech in America. This is the first time for many years we have seen a UK prime minister openly call for the Bank of England, which is supposed to be independent from the government of the day, suggesting that base ra...
Read MoreIs Alistair Darling a busted flush?
Amid signs of yet more discontent between number 10 and number 11 Downing Street many people are starting to write off the political future of Chancellor of the Exchequer Alistair Darling. His recent White Paper on the UK regulatory system for the financial markets hit the headlines with some eye-catching initiatives although ultimately many believe the paper is severely flawed and has a number of...
Read MoreAlan Sugar joins the UK government
Sir Alan Sugar has today agreed to join the UK government in an advisory capacity as Gordon Brown looks to rebuild his battered reputation and standing in the UK. The serial entrepreneur will take on an unpaid adviser role and has apparently been promised a seat in the House of Lords. He will advise Lord Mandelson on practical ways to help UK businesses in a move which many believe is more public...
Read MoreWhy is the UK mortgage market so uncompetitive?
As the newspapers and analysts continue to talk about recovery in the UK property market there is still concern as to why the UK mortgage market is still very uncompetitive in real terms. While we see the headlines of rock bottom mortgage rates, there are very few people able to obtain these deals because of the requirement for such a high level of deposit. There is a general consensus that first-...
Read More