Paul Tucker warns of weak economic recovery
Paul Tucker, the deputy governor of the Bank of England, has warned UK economists that the UK economic recovery could be prolonged and fairly weak. This comes on the back of economic data which shows that the UK retail sector is stagnating at the moment which is a disappointment to those expecting a fully fledged UK economic recovery in the short to medium term.
It will be interesting to see how economists amend their forecasts for 2009 and 2010 with more and more people becoming concerned about the strength of the recovery and the ability of the UK economy to hold onto any gains made in 2009. As we have mentioned on numerous occasions, a weak start to 2010 would be a disastrous development for the UK government as we approach the next general election.
While Gordon Brown and the government may well have made mistakes, we will only really see the fruits of their investment in the medium term and ultimately this may not assist their attempt to regain office. However, there are also many people who believe the incoming government, whoever that may be, will be inheriting something of a poisoned chalice. Time will tell but the UK economic situation is far from clear and looks set to get murkier before the mist finally clears.
Share this..
Related stories
Where have the green shoots of recovery gone now?
As the Bank of England issues one of the most depressing inflation reports in modern history, suggesting that the UK recession is deeper and far reaching than first thought, the green shoots of recovery which appeared to be breaking through just a few days ago have now disappeared. So what has happened over the last few days for the Bank of England to suggest the recession will take longer to reco...
Read MoreUK economy could take two years to recover
Despite only yesterday suggesting that the UK economy was well on the way to recovery, the Bank of England has backtracked slightly with a suggestion that pre-credit crunch levels will not be reached until 2011 at the earliest. Citing a "long and hard" recovery the Bank of England appears to be giving mixed signals to the markets which will not go down well amongst investors and analysts. So what...
Read MoreCadbury shares push ahead to record high
Cadbury shares today arose by 17p to nearly £8.20 with speculation that Nestlé may be looking to enter the bidding war for the UK outfit. When you also consider that Ferrero, Hershey and Kraft Foods are also in the mix it would appear that the UK stock market believes that Cadbury's days as an independent outfit are most certainly numbered. However, there is still some way to go yet to appease...
Read MoreLast ditch bid to avert postal strike
Unions and Royal Mail management are today in talks regarding planned strikes which will literally cripple the UK postal system. These last-ditch talks have been scheduled as we approached the first official strike date after which point many people believe it would be difficult for both parties to get around the negotiating table. Is there hope for the immediate future?
The very fa...
Recession holds back UK entrepreneurs
The UK has for many years been a hotbed of entrepreneurial talent with new companies and new ideas arising on a regular basis. However, as you might expect, the ongoing UK recession is seeing more and more entrepreneurs holding back on their ideas due to a mixture of market conditions and reduced liquidity in the money markets. There is growing concern that many of these entrepreneurs will either...
Read More