Is the UK’s Economy Under Threat
Although the United Kingdom is currently suffering from their worst deficit, the British Chamber of Commerce (BCC) is expecting an economic growth in 2011 of 2.1 percent, with a 2.3 percent increase in 2012. Compare this to the 1 percent growth predicted for 2010, and there may be reason for optimism.
However, this increase will likely be a temporary growth and it is believed that it will not last in the long run, according to the BCC, who pointed out that a double-dip recession will not be avoided in the near future. Although this may seem bleak, many experts believe that the future of the United Kingdom’s economy is still in question and is by no means certain to suffer, part of this conclusion could be drawn on the rise of home equity release.
According to the BCC, economic recovery is expected to slow in this year’s first quarter due to a rise in VAT as well as weather related issues, the gross domestic product is expected to rise as a result of stimulus packages and a rise in equity prices. These are the short term solutions. For long term solutions, it is believed that without a reduction in personal debt, a cut in the national debt, and without strengthening the state of banks, the state of the nation’s economy will continue to be limited.
The Treasury seems rather optimistic, with a prediction of ￡163 billion in borrowing for 2010-11. The BCC on the other hand are considerably less optimistic, with a realistic prediction of ￡140 billion. This discrepancy is one of the many causes for the lack of economic growth and security.
Job creation and the need for successful businesses are essential in forcing economic growth in the long term, and although the recession is over, the need for vigilance is more important now than it was before.
For these reasons it would be difficult at this time to say that the economy is under serious threat. It may be facing some serious challenges which requires some very serious and firm decisions to be made.
Comments are closed!