The shaky nature of the global markets over recent months mean that many economists are awaiting the UK’s first GDP figures of the year with baited breath. Will uncertainty from the economic downturn in China seep through to more developed economies such as the UK? That’s the question on the lips of many.
Forecasts indicate that the British economy will remain strong, especially when compared to the other developed economies around the world. A recent Reuters poll indicated that growth of 0.5% will be recorded for 2015’s last three months, climbing from 0.4% in the preceding quarter.
However, others have made gloomier predictions, highlighting the relatively poor Christmas sales figures in the retail sector as a reason why the forthcoming GDP figures could disappoint.
The forecasts come after chancellor George Osborne last week used the World Economic Forum in Davos to declare that the UK is the global economy’s “bright spot” and that its main threat was from other economies around the world impacting on domestic finances. Osborne spoke of the “dangerous cocktail of risks from the global economy” which has the potential to transmit to the UK.
Looking to the future, he concluded: “Anyone who thinks it’s mission accomplished with the British economy is making a grave mistake.”
