Chancellor's economic growth forecast 'unrealistic'

Leading economic think-tank, Ernst & Young Item Club has said that Chancellor Gordon Brown's forecast for economic growth is unrealistic.

Their forecast estimated that the UK economy will grow at 1.8% this year, compared to the 2 - 2.5% target set by the Chancellor in the Budget. Recent official figures revealed that the UK economy grew by just 0.1% in the first three months of the year.

While it is expected that The Bank of England will keep interest rates at the current level of four per cent until the end of the summer, the club believe this will be moved back up to 5.5% over the next 12 months.

The impending increase in employers' National Insurance contributions will move to further reduce pay rises and subdue inflation overall.


Related Northern Ireland Business News Stories
Click here for the latest headlines.

29 August 2001
IMF cuts economic growth forecast
The IMF has cut its forecast for world economic growth this year from 3.2 per cent to 2.8 per cent. International news service, Reuters reported the news on Wednesday citing unnamed sources at the international lender for the prediction. However, on Tuesday, Italian news agency ANSA reported that IMF's World Economic Outlook would predict a 3.
26 January 2010
Economy 'Turns Corner' Says Northern
News today that the UK economy has come out of recession has been welcomed by a senior local banker. The UK was the last major economy still in recession, but today's figures - while positive - showed it had only grown by a weaker-than-expected 0.1% in the last three months of 2009.
07 August 2012
New Car Registrations Up 9.3%
New car registrations continue to improve, according to the Society of Motor Manufacturers and Traders (SMMT). They rose 9.3% in July to 143,884 units – the fifth monthly gain in a row and the best of 2012. Registrations over the first seven months have risen more than 40,000 units or 3.5% to 1,201,564 units.
25 June 2010
Report Predicts Economic Growth In 2011
An influential financial advisory company has claimed Ireland will have the greatest recovery rate among eurozone members next year. World wide financial experts Ernst & Young said their quarterly eurozone forecast predicts Ireland will jump from its current position of 15th up to second in terms of GDP growth in 2011 at 2.8%.
16 November 2001
UK Chancellor promise help for manufacturing sector
Gordon Brown, the UK Chancellor, has promised to introduce revised tax breaks for the UK’s struggling manufacturing sector. During a speech to the Institute of Directors, the Chancellor said that he understood people’s concerns about the global slowdown and the effects on Britain’s economic growth.