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Euler Hermes has published its Global Economic Outlook (June 2006), predicting
better news for the UK construction sector, which it believes will be the
spearhead of the economy.
But the outlook for industry is not so bright, with the pressures of off-shoring
and increased production costs dimming industrial confidence that in turn is
impacting on future inward investment and recruitment.
Strong exports, in particular to the euro zone in 2006, should make it possible
for the external balance to contribute less negatively to growth, especially
given that the resumption in domestic demand appears too moderate to cause any
surge in imports.
If true, this balances a difficult year in 2005 for British Trade with the
country’s first oil supply deficit for 26 years, a new record trade deficit of
£65.5 billion, plus a 17% fall in the traditionally profitable balance of
services. GDP looks set to remain at 2%.
Source:
RedAlert
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