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A leading City think-tank today raised its outlook for the UK economy but warned growth will be “sluggish” no matter who wins the general election.
The Centre for Economics and Business Research forecast economic growth of 1.2% this year, the same as it predicted in January.
It raised its outlook for next year from 0.8% to 1.3% and for 2012 from 1.1% to 1.4% as faster global expansion and the weak pound aid the recovery.
Chief executive Douglas McWilliams said the revisions were based on a Conservative victory in the election and aggressive action to cut the deficit.
But he added: “Whoever wins the election, we will be in for a tough couple of years of sluggish growth at best as the budget deficit issue is addressed.”
It came as European Union finance ministers met in Madrid to discuss how to address the debt crisis in Greece, where the deficit is running at 12.9% of gross domestic product.
That is just a little more than the 11.8% seen in the UK.
Greek prime minister George Papandreou yesterday asked to meet the European Union, the International monetary Fund and the European Central Bank to discuss a €45 billion (£39 billion) package.
He said: “The IMF's involvement does not mean that the country is bankrupt.”
Reader views (2)
If you vote for any of the 3 main parties, it will take forever to get us sorted out,all to far to the left for my likeing, the euro will take a dive soon, wait and see !
- David, Hornchurch;England, 19/04/2010 01:48
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These kind of reports by banks, the sordid architects of our present crisis, can be taken with a pinch of salt. The economy will not grow: the present so-called recovery is artificial; just a response to the massive financial stimuli here, in America and around the world. When they wear off, as they will soon, our economy will crash leaving us with staggering amounts of debt on which we will struggle to pay the interest. The outlook for America is even bleaker because the US Dollar will not continue as the world's reserve currency much longer - the Chinese, Indians, Russians and Arabs are planning to replace it with a new composite currency. The US Dollar will halve in value. The future is with the creditor nations of the East; not the profligate debt ridden ones of the West.
- John, Dartford, 16/04/2010 14:58
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