UK economy in limbo
Each day seems to bring a different spin on the performance of the UK economy with a reduction in retail spending countered by a forecast reduction in inflation but there are so many other issues to consider in the short to medium term. In many ways analysts are as confused today about the direction of the UK economy as they were six months ago with many privately concerned about the potential for a double dip recession.
We have covered a number of different economic forecasts, economic numbers and economic reports over the last few days which have given contradictory indications about the direction of the UK economy in the short term. However, perhaps more telling than most, we saw the Bank of England step into the fray yesterday confirming it was downgrading its UK economic growth forecast for 2010 and flagged the potential re-introduction of the quantitative easing program if the UK economy fails to respond in a positive manner in the first half of 2010.
While on the surface the UK economy is certainly in a better situation than it was 6 to 12 months ago, even if the future direction is clouded in mystery, the fact that UK personal debt, UK national debt and the budget deficit are at record highs is a concern for the medium to longer term. The truth is there is no quick fix for the current economic problems haunting the UK and it will simply be a case of small steps forward.
Share this..
Related stories
Bank of England cautious on UK economy
The Bank of England has revised various forecasts regarding the UK economy amid concerns that the exit from recession will be slower and longer than expected. While the Bank of England last week suspended the quantitative easing program, the bank's governor Mervyn King has today suggested that the program may return and it is too soon to end the program completely. So where does this leave the UK...
Read MoreGerald Ronson warns of problems with UK economy
Property tycoon Gerald Ronson has today criticised the UK government for what he believes is the creation of a two-tier Britain with rising unemployment outside of London having the potential to cause social unrest. It has long been known that the London economy can be very different to the wider UK economy and recent events have highlighted this fact. So why is Gerald Ronson concerned about the f...
Read MoreIs the UK economy really the worst in the developed world?
As we covered yesterday, the International Monetary Fund (IMF) has issued a suggestion that the US and the UK economies, taking out the oil-producing countries, are the weakest in the world. To put this into perspective, the UK government is expected to borrow 9.5% of GDP in 2009 which is equivalent to £140 billion although this will increase further in 2010 to 11% of GDP equating to borrowings o...
Read MoreUK manufacturing shows surprising strength
Despite the fact that the UK manufacturing base has been decimated over the last 20 or 30 years, there are signs that the recovery in the economy has spread through into the manufacturing sector. The Chartered Institute of Purchasing and Supply's purchasing managers index rose from 51.8 in November to 54.1 in December - with a figure of over 50 indicative of growth in the sector. There was also go...
Read MoreUK government looks to save Corus Teeside plant
This week's announcement of job losses at the Corus Teeside steel plant, which has been in existence for over 150 years, has attracted the attention of the likes of Lord Mandelson. The government, currently on a UK roadshow, will today hold its first cabinet meeting in the north-east with hopes that it will be able to put together some form of rescue package for the plant. While the figure of 1...
Read More