Forecasters warn of outright recession
Article Abstract:
The latest economic forecasts are predicting that the UK economy in 1999 is looking to a hard landing and potential stagflation, where stagnation and inflation are combined. As the effects of the strong pound and the rising interest rates are felt economic growth looks set to slow down to just 0.8%. The merchant bank Schroder, is forecasting growth down from 1.5% in April 1998. An outright recession is not being ruled out. The Bank of England looks unlikely to offer any assistance to ease the situation. The state of the economy is being attributed to the high share prices and property prices, which in turn saw a 1% rise in consumer spending. The Bank of England now believes that a downturn in asset prices will slow the economy down. If the high levels of earnings growth continue then stagflation seems likely, especially if the Bank of England is forced to raise interest rates. There are signs that the service sector is beginning to show some downturn, and things in the manufacturing industry look little better. Redundancies in the near future seem imminent. Clearing Banks are repeating the mistake they made at the last recession by withdrawing loan facilities, and thereby making 1,000 businesses bankrupt within a week. The banks are denying this strategy. While borrowers appear to be reducing their spending consumer spending appears to remain buoyant. This has been fuelled by the heavy bonus payments of late. Credit card accounts in arrears have risen to 14.5%.
Comment:
UK: Latest economic forecasts are predicting that economy in 1999 is looking to a hard landing and potential stagflation
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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You ask the questions
Article Abstract:
William Hague will still be the leader of the UK Conservative party at the next general election, according to journalist Boris Johnson, who edits Spectator magazine. He regards himself as a political writer, rather than a writer of politics. He feels that Spectator is a very high quality magazine, offering very distinguished columnists and an exemplary standard of writing. He rejects claims that the magazine is irrelevant.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1999
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