Wednesday, 3 August 2016

NEW FORECAST SHOWS ECONOMY SLOWING SHARPLY

The National Institute for Economic and Social Research (NIESR) has released their August report and gets a lot of coverage at the BBC (HERE), The Guardian (HERE) and Reuters (HERE).  It does not make happy reading and suggests the economy will shrink by 0.2% this quarter and be flat for the rest of the year.  We may avoid a technical recession but the chances of this are only 50:50.

Next year will see growth of just 1%. The report apparently says the Bank of England should use a sledgehammer to crack a nut - meaning I assume don't take any risks and use all available means to stimulate the economy.  Note the actual report is behind a pay wall so we can only see summaries.

Incredibly, The Telegraph don't cover it at all - amazing.

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