|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
26th of August 2010
|    Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  
April 22, 2010    

UK budget deficit races away

Bookmark and Share

by Gill Montia
UK budget deficit races away

The UK’s annual budget deficit soared to £162.4 billion in the 12 months to the end of March, but fell short of the £167 billion forecast in last month’s Budget.

With the deficit is at its highest since the Second World War and total government debt now at £890 billion (or 62% of GDP) all eyes are on the prospects for economic growth as an alternative to savage public spending cuts.

However, earlier this week, Ernst & Young ITEM Club described the prospects for economic recovery in 2010 as “dismal” with output growth likely to be about 1%.

In its latest “Outlook for Business” report, the respected economic forecaster warned: “An export-led recovery is really a growth story for the UK from 2011 onwards, not for this year”.

For 2009 as a whole, Britain’s GDP contracted by 4.9% compared with growth of 0.5% in the previous year.

According to the Office for National Statistics, GDP increased by 0.4% in the fourth quarter of last year but was still 3.1% lower than in the same period of 2008.

GDP figures for the first quarter of 2010 are due out tomorrow.

Discuss this in the Finance Markets forums

Story link: UK budget deficit races away




Related financial stories to: UK budget deficit races away:
Previous: «
Next: »

Visited 2300 times, 1 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

Tags: , , , ,

 


Economy News feed Economy News

All Financial News feed All Financial News