UK Economy subdued for next two years says report

UK economy

UK economy

A report by the Organisation for Economic Co-Operation and Development (OECD) has believed the organisation believe the UK economy will remain subdued for at least the next two years.

The lack of growth is down to decreased government spending and slowing world trade.

They do expect some growth however, with a 2011 prediction of a 1.5% increase, and a 2% increase in 2012.

The Independent Office for Budget Responsibility forecast a 1.9% growth this year, but the OECD called that “ambitious” and labelled the government cuts “necessary.”

They went on to add that they agreed the cuts were needed if a sustainable recovery was to be achieved.

The body also advised that the government should keep interest rates low, and summarised, “All in all, a subdued recovery is expected over the next two years.”

Chancellor George Osbourne added, “The Budget [on March 23] will echo what I see as the central message of this OECD report. This government has set the right course for the British economy but we have so much more to do.”

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