Economics Weekly by Lloyds TSB

UK Economic Update: Downside risks argue for further stimulus
UK Economic Update: Downside risks argue for further stimulus

In this week’s commentary, we summarize our latest UK economic forecasts, outlined in more detail in our recently published Q4 UK Economic Bulletin.

A fragile recovery

While we expect a recovery of sorts to continue, the challenges to growth remain formidable. Forthcoming public spending cuts – to be unveiled in more detail in Wednesday’s Spending Review – declining household disposable incomes and ongoing deleveraging will likely act as a major constraint on domestic demand growth next year.

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