UK growth ‘subdued’ for a couple of years
The Organisation of Economic Co-operation and Development (OECD) is predicting that UK economic growth will be ‘subdued’ for the next couple of years as a result of spending cuts.
They are estimating economic growth for the UK of 1.5% in 2011, rising to 2% for 2012.
These forecasts are lower than those published by the Office of Budget Responsibility, who have their own forecast of growth at 1.9% in 2011.
The OECD describes UK government spending cuts as ‘ambitious and necessary’, but points out that they are likely to hamper economic recovery.
At the same time, they are recommending that the Bank of England keeps interest rates low.
It will be interesting to see how these predictions tally with the numbers used in the Budget next week.
Photo credit: Flickr/World Economic Forum