UK doing better than other European economies

It has been claimed in a recent report that the economy in the UK is faring much better than other European economies, and that the UK government deserved credit for its economic policies.

The claims were made by leading economist, Paul Krugman, who is a Nobel Prize winner. He described the UK’s economic policies as ‘intelligent’. He was giving an interview to a national newspaper earlier this month, and spoke at a time when the pound had reached its strongest level this year.

He also claimed that the fact that the pounds had been so weak earlier in the year could have actually proven beneficial to the UK, stating: “The UK has achieved a lot of monetary traction in the way that no one else has through the depreciation of the pound. In effect, you’ve carried out a successful beggar-my-neighbour devaluation. I think the UK economy looks the best in Europe at the moment.”

He added that the banking system had been stabilised as a result of government policy.

He also suggested that the Labour government could pull itself from the brink of disaster by regaining consumer confidence if it held out on holding an election until next year, when the economic and financial situations might be looking far healthier.

He stated: “If the government can hold off having an election until next year, Labour might well be able to run as ‘we’re the people who brought Britain out of the slump’.”

A number of recent reports have suggested that the end could be in sight for the recession in the UK, with a range of encouraging figures having been released over recent weeks. However, the Bank of England and a number of industry groups and professionals have said that it is far too early to be too optimistic as yet.

Tags: economy, Pound sterling, uk economy, Great Depression in the United Kingdom, labour government, Regional science, economic crisis, credit crunch