The outlook for the UK economy

Abstract

The outlook for the UK economy is more positive than six months ago. Conditions in the global economy have steadied and UK domestic demand is, if anything, stronger than expected. Business propositions should, however, be examined for vulnerability to various risks – not only the risk of more subdued growth, but also for any vulnerability to a sharp interest rate rise should a ‘boom-bust’ cycle materialise. The risks to the outlook remain marginally weighted to the downside, but the UK remains well placed to recover from a relatively mild and short-lived downturn in the second half of 2002. Copyright © 2002 Henry Stewart Publications