Growth in the Balance 29 May 2012
The return to recession in the UK and much of Europe, combined with the ongoing Eurozone debt crisis, has led to a political realignment across Europe, and a change in priorities, emphasizing economic growth rather than austerity. However, the desire to promote growth has been countered by the need to maintain existing commitments to austerity programmes.
This has led to the view emerging that growth and austerity are not mutually exclusive, but must be balanced. Growth in order to be sustainable must not be funded by borrowing, and austerity is a necessary part of the recovery programme.
This balance between growth and austerity has emerged on a number of levels.
The Push for Growth 11 May 2012
Following the news of a double-dip recession in the UK, and the unpopularity of austerity measures in the Eurozone, pro-austerity politicians have suffered losses in elections. There has been a rise of support for politicians with an agenda to promote growth.
BlogCatalogCharting Unknown Territory 03 May 2012
Following last week’s news that the UK has entered a double-dip recession, the questions that follow are “What is the economic situation really like?”, and “What are our prospects for a recovery?”
The picture of Britain in a double-dip recession is a mixed one. While the term double-dip recession conjures up pictures of a big dipper or rollercoaster ride, the reality is that the UK’s economy is flat lining. Sir Mervyn King, the Governor of the Bank of England, has predicted a steady, slow recovery in the year ahead. There has been a record collapse of UK money supply, and banks continue to scale back their lending to businesses. Credit ratings agency Moody’s has reported that the Olympics will not necessarily be very beneficial to the UK economy in the long run. Britain’s large services sector offers hope of escape from recession. Many companies have weathered the storm of the last few years, and are well placed for growth.
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