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Goldman Sachs: UK economy to grow faster than US or Europe watch

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    See http://www.telegraph.co.uk/finance/e...economies.html

    In other news, unemployment has fallen: http://news.bbc.co.uk/1/hi/business/8469648.stm. This contrasts markedly with the 1980/82 and 92/93 recessions where unemployment hit higher figures and continued to rise for much longer.


    Thoughts? Does this vindicate Labour's bail-out and attempts to battle the recession, or is it an indication of underlying economic resiliency?
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    The UK is going to overtake NY as the leading financial center because it attracts many companies from emerging markets who need a western outlet.

    We have some of the best universities in the world which attracs high calibre candidates from across the world.

    We have a great financial sector which has the opportunity to drive growth once again if politicans don't give in to populism and stunt its growth.

    Generally I see pitiful individuals complaining about the labour government, our democratic institutions, the NHS, education when in reality we have some of the highest standards in the world.

    Furthermore plenty of the less knowledgeable individuals talk about the bailout as the state literally handing out money to banks. In reality the government is poised to make huge profits in those institutions when the market fully recovers.

    So Gordon Brown certainly is less charismatic than David Cameron but in reality there is very little policy difference between the two parties. I would vote for one Tory term in office simply to give Labour the chance to reinvigorate itself and come to the next election with fresh ideas. Overall New Labour is the best type of government while old Labour is the worst.
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    I wouldbe gobsmacked if the UK economy grew by 3.4%. Saying that there is plenty of room for recovery after such a decline. We are hugely indebted personally as a country and interest rates will have to rise. The budget deficit will have to come down i.e tax rises and/or spending cuts. Forget the ivestment vs cuts nonsense, it is simply a matter of timing.

    I would be very surprised if in 5 years we aren't a good way behind France, Germany and probably the US.
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    Goldman Sach's forecast is based on the depreciating pound, which is determined primarily through monetary policy. I'd say this vindicates the Bank of England, rather than Labour. In any case, now they have made this forecast the pound is going to appreciate; this will stifle exports and dampen economic growth, unfortunately. I don't think we'll see the feared Japanese-style sluggish recovery, but I think it's very unlikely that we'll see growth as high as 3.4% in 2011.

    As for unemployment falling, this is misleading. Unemployment refers to people not employed but actively looking for work, so a fall does not necessarily mean that they have found work, but that they have actually stopped looking. Clearly, this is even worse than unemployment. Sadly, it appears to be the case: "The number of people neither employed nor looking for work - not included in unemployment figures - was up to 21.2% of the population. That was the highest rate since August 2007". This is definitely an indictment of Labour, not a vindication; we've gone backwards.
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    Those forecasts are utter nonsense.
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    (Original post by TheMeister)
    Those forecasts are utter nonsense.

    Possibly, but I'm not going to argue with a company making 1bn quid profit a month...
 
 
 
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