Bank of England boss Mervyn King warns that grim GDP figures serve as a stark reminder of Britain's "choppy" economic recovery and says Britons should expect "uncomfortably high" levels of inflation.
Link to the article: Channel 4 News
Showing posts with label economic recovery. Show all posts
Showing posts with label economic recovery. Show all posts
Wednesday, 26 January 2011
Wednesday, 16 September 2009
‘This could affect the political debate’
Lin to the article: Channel 4 News
Updated on 16 September 2009
By Channel 4 News
Today’s leaked Treasury document tells us things we didn’t know before about the UK’s economic prospects, explains Channel 4 News economics correspondent Faisal Islam.
Krishnan Guru-Murthy speaks to Faisal Islam about the significance of today's leak by the Conservatives of a Treasury document containing departmental budget forecasts up until 2014.
Updated on 16 September 2009
By Channel 4 News
Today’s leaked Treasury document tells us things we didn’t know before about the UK’s economic prospects, explains Channel 4 News economics correspondent Faisal Islam.
Krishnan Guru-Murthy speaks to Faisal Islam about the significance of today's leak by the Conservatives of a Treasury document containing departmental budget forecasts up until 2014.
Monday, 20 July 2009
Swine flu threatens green shoots
Link to the article
By Carl Dinnen
Is swine flu about to kill off what green shoots of recovery there are? Carl Dinnen reports.
Swine flu could cause the recession-hit British economy to shrink by up to 7.5 per cent this year.
That is the warning today from the Ernst and Young ITEM club, a group which analyses treasury figures to produce forecasts.
Ernst and Young ITEM club's Peter Spencer joined us in the studio and gave his view on the extent to which swine flu would threaten the UK's economic recovery.
"The economic patient has been stabilized and that's a good thing but hopes for that recovery remain, I think, pretty weak.
"There's really no oomph in the high street. There's really no stimulus that you can see from the world economy. There's really nothing to pull us out of this recession quickly," he said.
On the news that shares have been rising, he added, "as the old adage goes the stock market has predicted something like four out of the last three recoveries. It really isn't a very good indicator."
Mr Spencer detailed how badly the recession-hit UK economy could be crippled further by swine flu.
"It could easily take another 3 per cent off output. That's first of all because people obviously find it difficult to go to work if they're poorly or their dependents are poorly.
"At the same time we are a little bit loathe to go into public places, that is going to hit airlines, hotels, catering - all of those kinds of industries.
"On a worse case scenario output could fall by 7.5 per cent but remember output is already down by 4.5 per cent, so it's really adding 3 per cent to that negative figure."
But Mr Spencer predicted economic recovery by the end of 2010: "It (swine flu) certainly won't accelerate the recovery but the good thing if you like about swine flu, if there is one, is that any output that is lost this winter will be made up pretty quickly as we come out of recession hopefully towards the end of next year.
By Carl Dinnen
Is swine flu about to kill off what green shoots of recovery there are? Carl Dinnen reports.
Swine flu could cause the recession-hit British economy to shrink by up to 7.5 per cent this year.
That is the warning today from the Ernst and Young ITEM club, a group which analyses treasury figures to produce forecasts.
Ernst and Young ITEM club's Peter Spencer joined us in the studio and gave his view on the extent to which swine flu would threaten the UK's economic recovery.
"The economic patient has been stabilized and that's a good thing but hopes for that recovery remain, I think, pretty weak.
"There's really no oomph in the high street. There's really no stimulus that you can see from the world economy. There's really nothing to pull us out of this recession quickly," he said.
On the news that shares have been rising, he added, "as the old adage goes the stock market has predicted something like four out of the last three recoveries. It really isn't a very good indicator."
Mr Spencer detailed how badly the recession-hit UK economy could be crippled further by swine flu.
"It could easily take another 3 per cent off output. That's first of all because people obviously find it difficult to go to work if they're poorly or their dependents are poorly.
"At the same time we are a little bit loathe to go into public places, that is going to hit airlines, hotels, catering - all of those kinds of industries.
"On a worse case scenario output could fall by 7.5 per cent but remember output is already down by 4.5 per cent, so it's really adding 3 per cent to that negative figure."
But Mr Spencer predicted economic recovery by the end of 2010: "It (swine flu) certainly won't accelerate the recovery but the good thing if you like about swine flu, if there is one, is that any output that is lost this winter will be made up pretty quickly as we come out of recession hopefully towards the end of next year.
Wednesday, 25 February 2009
Blanchflower Says U.K.’s Recession May Intensify
By Brian Swint
Feb. 25 (Bloomberg) -- Bank of England policy maker David Blanchflower said the U.K. recession may intensify “significantly” and it’s too early to gauge when the economy will start to recover.
“This is not the bottom,” he said in an interview at Stirling University in Scotland today, before delivering a speech. “I expect the first quarter to be worse than the fourth, probably significantly worse. I don’t see any signs of green shoots at the moment.”
The British economy shrank the most since 1980 in the final three months of last year as spending by consumers and companies shrivelled, data showed today. Bank of England policy makers reduced the benchmark interest rate to 1 percent this month, the lowest ever, and defeated Blanchflower’s bid to cut it even further to 0.5 percent.
The bank’s forecasts show that “with monetary policy where it is, overly restrictive, we cannot get inflation back to target unless we ease further,” Blanchflower said. “The question is, how far close to zero is the lower bound? I don’t exactly know.”
Link to article: Bloomberg
Feb. 25 (Bloomberg) -- Bank of England policy maker David Blanchflower said the U.K. recession may intensify “significantly” and it’s too early to gauge when the economy will start to recover.
“This is not the bottom,” he said in an interview at Stirling University in Scotland today, before delivering a speech. “I expect the first quarter to be worse than the fourth, probably significantly worse. I don’t see any signs of green shoots at the moment.”
The British economy shrank the most since 1980 in the final three months of last year as spending by consumers and companies shrivelled, data showed today. Bank of England policy makers reduced the benchmark interest rate to 1 percent this month, the lowest ever, and defeated Blanchflower’s bid to cut it even further to 0.5 percent.
The bank’s forecasts show that “with monetary policy where it is, overly restrictive, we cannot get inflation back to target unless we ease further,” Blanchflower said. “The question is, how far close to zero is the lower bound? I don’t exactly know.”
Link to article: Bloomberg
Saturday, 21 February 2009
US thanks China for recession aid
Link to article
Last Modified: 21 Feb 2009
By: Faisal Islam
America thanks China for helping it through recession and says human rights concerns come second to economic survival.
America and China will work together to help lead the world recovery, says the secretary of state, Hillary Clinton.
On her first official visit she has downplayed her past criticism over human rights and expressed her appreciation of China's purchasing of American debt.
It is the first time a top American politician has recognised the long running reality of American financial dependence on China.
But as our economics correspondent Faisal Islam reports from Shanghai, the price the Chinese want for further support could cause other problems.
This report contains flashing light.
oining Krishnan Guru-Murthy is Dr Linda Yueh, an expert on globalisation and the Chinese economy.
Last Modified: 21 Feb 2009
By: Faisal Islam
America thanks China for helping it through recession and says human rights concerns come second to economic survival.
America and China will work together to help lead the world recovery, says the secretary of state, Hillary Clinton.
On her first official visit she has downplayed her past criticism over human rights and expressed her appreciation of China's purchasing of American debt.
It is the first time a top American politician has recognised the long running reality of American financial dependence on China.
But as our economics correspondent Faisal Islam reports from Shanghai, the price the Chinese want for further support could cause other problems.
This report contains flashing light.
oining Krishnan Guru-Murthy is Dr Linda Yueh, an expert on globalisation and the Chinese economy.
Subscribe to:
Posts (Atom)
Posts
