This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-29680253
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
UK economic growth to fall to 2.4% in 2015, says EY Item Club | UK economic growth to fall to 2.4% in 2015, says EY Item Club |
(about 9 hours later) | |
The UK economy will grow by 2.4% in 2015, well below the 3.1% growth expected this year, forecasting group EY Item Club has said. | The UK economy will grow by 2.4% in 2015, well below the 3.1% growth expected this year, forecasting group EY Item Club has said. |
It says the forthcoming election and accompanying political uncertainty will hold business back from investing. | It says the forthcoming election and accompanying political uncertainty will hold business back from investing. |
Growth will also be constrained by worries about the eurozone and the Ukraine conflict, EY Item Club says. | Growth will also be constrained by worries about the eurozone and the Ukraine conflict, EY Item Club says. |
The 2.4% figure undershoots forecasts issued by the Bank of England, the CBI and the International Monetary Fund. | |
Last week, the Bank's chief economist, Andrew Haldane, said he was downbeat over the UK economy because of weaker global growth, low wage growth and financial and political risks. | Last week, the Bank's chief economist, Andrew Haldane, said he was downbeat over the UK economy because of weaker global growth, low wage growth and financial and political risks. |
He said interest rates should remain low to avoid long-term economic stagnation. | He said interest rates should remain low to avoid long-term economic stagnation. |
'Dreadful' | 'Dreadful' |
Peter Spencer, EY Item Club's chief economic adviser, said: "The forecast for GDP growth is still relatively good. What has changed is the global risks surrounding the forecast and the headwinds facing investment by firms. | Peter Spencer, EY Item Club's chief economic adviser, said: "The forecast for GDP growth is still relatively good. What has changed is the global risks surrounding the forecast and the headwinds facing investment by firms. |
"The UK's export outlook continues to look dreadful. The glimpse of economic rebalancing that we saw in the early part of this year has turned out to be a false dawn. | "The UK's export outlook continues to look dreadful. The glimpse of economic rebalancing that we saw in the early part of this year has turned out to be a false dawn. |
"Looming political uncertainty risks denting corporate confidence - the question now is how will these risks play out? I expect caution to become the order of the day." | "Looming political uncertainty risks denting corporate confidence - the question now is how will these risks play out? I expect caution to become the order of the day." |
He also said the Bank of England was unlikely to rush to raise borrowing costs in the face of falling commodity prices and low wage growth. | He also said the Bank of England was unlikely to rush to raise borrowing costs in the face of falling commodity prices and low wage growth. |
The report predicted inflation would remain low. It is currently at a five-year low of 1.2% and is likely to average 1.3% in 2015, EY Item Club said. | The report predicted inflation would remain low. It is currently at a five-year low of 1.2% and is likely to average 1.3% in 2015, EY Item Club said. |
The Bank of England's most recent forecasts predict GDP growth of 3.5% this year and 3% next, while the IMF says it will be 3.2% followed by 2.7% and the CBI 3% and then 2.7%. | The Bank of England's most recent forecasts predict GDP growth of 3.5% this year and 3% next, while the IMF says it will be 3.2% followed by 2.7% and the CBI 3% and then 2.7%. |
Previous version
1
Next version