Economics weekly by Lloyds TSB

High levels of indebtedness, credit constraints and forthcoming fiscal austerity raise the likelihood that UK domestic demand will remain relatively weak over the next few years. Can the UK export its way to growth?

High levels of indebtedness, credit constraints and forthcoming fiscal austerity raise the likelihood that UK domestic demand will remain relatively weak over the next few years. As such, it raises the question of where UK economic growth will come from. Hence, it is important the UK maximises the opportunity it currently has to boost net trade through a weak exchange rate and low wage inflation.

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