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| On the way up? |
Heading into 2012 the British chambers of commerce (BCC) has
released some enlightening figures revealing that the UK
GDP growth shall strengthen to 2.1% next year. This is almost twice as
much as the estimated growth of 2011 (1.1%) and represents a gradual
improvement in the fortune of the British economy. Although economic growth is
expected to be slow next year it will still be present, which can only be a
positive.
The BCC’s quarterly forecast for 2012 also shows that interest rates will begin to rise by August at the
latest next year. This should mean that 2012 will be a happier year for savers
than 2011 has been. However, whilst positives can be drawn when heading into
the New Year, realism must be at the forefront of people’s thinking.
Unemployment figures are expected to rise to a peak of 2.62million next year
and public sector borrowing will continue to spiral out of control. This has
led to predictions of there being no short term economic improvement in 2012 a
sentiment I don’t personally agree with.
I personally believe that with CPI inflation expected to
fall in 2012 to 3.0%, economic growth should begin to match it and eventually
surpass by the end of 2012/2013. This should enable the UK to avoid the double
dip recession so many fear and make 2012 an important building block in the re-growth
of the economy.
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