Figures due for release by the Bank of England tomorrow, will reportedly show yet more economic weaknesses in the UK’s economy. The Bank of England will be cautioning us that economic growth is going to slow even more as a result of further problems in the eurozone and the US. Mervyn King, the governor of the Bank of England has apparently predicted that the GDP will rise but by only 1.3% as opposed to the 2% rise that was forecast at the beginning of the year. In addition to this modification, Vince Cable, business secretary has publicised his view that there is a high chance the UK may fall back into a recession. He believes the only way to prevent this is for the banks to give more loans which would inevitably increase economic growth.
Further, data found by Lloyds TSB’s regional purchasing managers’ index, shows that whilst London shows a strong and advancing business output, the west and north of England has shown little growth. This means that economic recovery is uneven across regions.
A survey conducted by Bibby Financial Services on a sample of 4000 businesses turning over between £50,000 and £10m found that 24% of the businesses owners have the view that trading is more difficult now than it was last year and 35% have no hope of economic recovery for at least three years.
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