MPC official expects growth in the economy

According to a recent report an official from the powerful Monetary Policy Committee has predicted that there will be growth in the UK economy over the course of this year.

The MPC member said that he expected to see the economy grow over the second part of this year, further adding to speculation that the recession may be nearing its end.

Over the past couple of years the global financial crisis and the ongoing recession has resulted in the UK economy suffering huge problems, with soaring job losses adding to the problem.

The MPC member, Dr Andrew Sentance, stated: ‘I expect to see a return to growth in the second half of this year. However, there are two big uncertainties over how quickly Britain will recover.

The first is the extent to which constraints on bank lending will hold back spending and business activity. The second is the momentum of recovery across the global economy.’

He added that business and consumer confidence has seen a significant improvement, the housing market seemed to be improving, and the stock market had risen strongly since the first quarter of the year.

He made his prediction shortly after the Bank of England also predicted that there would be improvement in the economy, but that it was likely to be a slow and drawn out recovery.

However, despite the prediction from Dr Sentance, officials from Citigroup have been far more pessimistic with their prognosis for the UK economy, stating that it is likely to be around 2012 before the economy recovers to levels seen before the onset of the global credit crunch and the recession.

One economist from Citigroup said that one of the factors that would hinder the recovery of the economy was the lack of credit, with banks still restricting mortgages and other types of finance as they try and shore up their own finances.

Tags: Economy of the United Kingdom, economics, official expects growth, recovery, job losses, Monetary Policy Committee, economic growth