Economic Review - A Bumpy Road To Recovery.
Mondaq Business Briefing › Nbr. 2011, January 2011
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Economic Review - A Bumpy Road To Recovery.
Foreword
John Connolly In this Review, Roger Bootle, Economic Adviser to Deloitte, turns his attention to how the economic recovery will fare during the new year. While he thinks that the road to health will be a bumpy one, he is optimistic that stronger and better-balanced growth will result eventually. Roger thinks that the recovery will struggle to maintain its recent momentum in the coming months. In particular, he doubts that the private sector is in a fit enough state to compensate fully for the fiscal squeeze that is set to get well underway this year. He expects GDP growth of just 1.5% in both 2011 and 2012. But the recovery in some parts of the economy will keep getting stronger. Roger thinks that business investment is the area likely to see the strongest growth over the next couple of years, partly because firms will invest in new capacity in order to exploit the opportunities created by the drop in the pound. What's more, further ahead the economy will have the scope for a period of faster growth to use up the reserves of unused capacity. And Roger thinks that the current period of deleveraging and belt-tightening will ultimately pave the way for healthier and more sustainable growth than that seen over the past decade. Once again, I hope that this Review helps you in both your...See the full content of this document
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