Economic Recovery Close to 2008 Peak

Economic Recovery Close to 2008 Peak.

Predictions from the British Chamber of Commerce (BCC) suggest that company directors as a whole are confident in the UK recovery and are both investing more and recruiting more people.

BCC predicted for 2014 that UK Gross Domestic Product (GDP), a measure of the UK’s total turnover, would grow by 2.7% in 2014, but the BCC has now revised its GDP growth prediction upwards, where it should peak in the summer at 2.8% pa.

Comment

If this is the case, GDP will have reached its 2008 high at 2.8%. 

Unemployment is still falling, with both the US and the UK reporting consistent falls in general unemployment, with the trend set to continue.

That said, the BCC has still raised concerns that youth unemployment is still at a record high and not falling.  The news sat alongside the Labour party pledging a “long term unemployed” job guarantee if they are elected in 2015.

We believe we are back to “boom bust” economics.  Markets will continue to be nervous with sharp swings up and down.  Volatility is key and as ever, opportunities for investment growth, will only be there for those that switch in and out of stock markets at or around the right time or rises and falls.  Watch out for our traffic light alerts.