Recovery

Economic update – December 2010

There is a widespread view that future growth in the UK economy will be more sustainable if it is driven by net exports and business investment and not by household spending. The third quarter GDP numbers provided mixed news for supporters of this view.

Tony Dolphin ·

OBR: Recovery “at a slower pace” than in the 70s, 80s and 90s

Tomorrow’s papers will probably note the forecast that, by 2015, public sector employment will fall by 330,000, one hundred and sixty thousand less than the 490,000 forecast in June. 30,000 of the difference is down to “methodological refinements”. The remaining 130,000 reduction is because the Spending Review cut more from social security and less from Departmental budgets than OBR expected – a different balance of misery, rather than a genuine improvement.

Richard Exell ·

OECD forecasts modest growth for UK economy

The OECD released its latest Economic Outlook today, setting out its forecasts for developments in its member countries. It is supportive of the UK government’s fiscal tightening, describing it as “substantial but necessary”, but warns that it will, when combined with weak real income growth, mean moderate output growth over the next two years.

Tony Dolphin ·
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