UK Economy 2008
February 8th, 2008 | by admin |The UK economy is facing reasonable prospects for growth in the upcoming year. The Bank of England’s growth forcecast shows a slight fall in growth. However, if the Housing market continues to fall, this fall in the growth rate may become quite significant. Another factor which may slowdown growth is the global economy, and in particular the US economy. If the US slowsdown it will reduce exports, but perhaps more importantly reduce consumer confidence, stock markets and this will increasingly effect the US economy.
Graph Showing past estimates of Growth and predicted growth
source: Bank of England
The Bank predict an upturn in growth during 2009, but, it becomes more difficult to predict future growth more than 12 months in advance.
UK growth rates will play an important role in determining inflationary pressures and interest rates in the UK.
Forecast for UK economy 2008 at Economics Help.org