UK GDP Economy Forecast Up

UK GDP Economy Forecast Up.

The Office for National Statistics has revised up its forecast for UK growth for 2013.

Originally, it had forecast zero 0% growth, but this has now been increased to 0.2%.


Our view
Encouraging news, but given that the UK had contracted in the run up to the end of 2012, these figures are hardly encouraging, it is merely that we are recovering lost ground very slowly.

We expect the UK economy to remain subdued for a number of years without major government economic stimulus.
Talk is already out there,

1. Bank of England, governor in waiting Canadian Mark Carney, suggesting thatinflationshould be removed as our economic benchmark, signalling realinflationis on its way
2. New appointed Deputy Governor of the Bank of England Paul Tucker, floating the idea of negativeinterestrates.

Expect the coming Budget to have some real economic bonuses. Watch this space.