The economic outlook for 2004: encouraging trends

The global recovery has finally taken off, and a buoyant 2004 seems all but assured. This should create opportunities for the UK's trade-exposed sectors, such as manufacturing. With corporate sentiment and balance sheets recovering, business investment is also likely to pick up during the next two years. As a result, GDP growth is forecast to rise to 3 per cent in 2004, its highest level for four years. The Bank of England will respond by raising interest rates, constraining inflationary pressures. But, at an expected peak of 4.75 per cent, borrowing costs should remain low by historic standards. In this environment, prospects for the property sector remain positive. Copyright © 2004 Henry Stewart Publications