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Economy 'weaker than predicted'=20
Economic growth in the UK will be weaker than predicted, Chancellor =
Gordon Brown is set to admit.=20
He will tell the International Monetary Fund (IMF) that record oil =
prices and a slow global economy are to blame.=20
The chancellor is expected to say Britain cannot be sheltered from "the =
ups and downs" of the world's finances.=20
Weaker economic growth could mean less money to spend on schools, =
hospitals and other commitments, possibly leading to increased taxes or =
more borrowing.=20
Economic critics=20
Shadow chancellor George Osborne said Mr Brown had been "living in a =
dreamland" over the economy and had at last "woken up".=20
"It is vital that he takes urgent steps to curb the growing waste of =
public money and follows the advice that everyone from the IMF to the =
Conservatives have been urging," he said.=20
This was: "Get a grip on public spending and get the public finances =
under control."=20
And Liberal Democrat Treasury spokesman Vince Cable said: "Gordon Brown =
is in serious trouble for the first time as Chancellor because of =
problems of his own making."=20
He claimed Mr Brown had relied too much on upbeat Treasury forecasts and =
was now having to "eat humble pie".=20
'Faster than others'=20
IMF experts believe the UK's gross domestic product (GDP) will grow by =
1.9% in 2005, compared to the 3-3.5% predicted by the Treasury.=20
The BBC's Guto Harri said Mr Brown will now have to "downgrade" his =
forecast, to the delight of his critics.=20
He said the chancellor's reputation will "take a knock".=20
Mr Brown will make his speech during the annual meeting of the IMF in =
Washington.=20
As well as rising oil prices - which have trebled since 2002 and doubled =
since last year - he will also highlight the performance of the world's =
economy.=20
However, Mr Brown will state low inflation and record employment will =
prevent the UK sinking into recession.=20
He will say: "Britain is continuing to grow faster this year than the =
other major European economies, all of whom are forecast to grow by less =
than 2% with just 1.2% growth in the euro area."=20
Domestic factors=20
The British Chambers of Commerce (BCC) said it was not surprised by Mr =
Brown's speech, as it had always predicted slower growth than the =
Treasury.=20
Director general David Frost said: "While high oil prices and low =
European growth are clearly important factors accounting for lower UK =
growth in 2005, it is important to bear in mind the dampening domestic =
factors".=20
These were "a sharp deceleration in consumer spending growth, a rapidly =
weakening housing market, and worrying signs of falling business =
confidence," he said.=20
The BCC called for the Bank of England to cut interest rates if economic =
circumstances worsened, and also urged the chancellor to boost business =
confidence by not introducing more taxes.=20
On Sunday 25 September 2005 at 22:15 BST on BBC One Panorama will be =
assessing Gordon Brown's performance since 1997, in Brown's Miracle =
Economy.=20
Story from BBC NEWS:
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<DIV><FONT face=3DArial size=3D2>
<DIV class=3Dheadline>Economy 'weaker than predicted' </DIV><B>Economic =
growth in=20
the UK will be weaker than predicted, Chancellor Gordon Brown is set to =
admit.=20
</B>
<P>He will tell the International Monetary Fund (IMF) that record oil =
prices and=20
a slow global economy are to blame.=20
<P>The chancellor is expected to say Britain cannot be sheltered from =
"the ups=20
and downs" of the world's finances.=20
<P>Weaker economic growth could mean less money to spend on schools, =
hospitals=20
and other commitments, possibly leading to increased taxes or more =
borrowing.=20
<DIV class=3Dbo>
<P><B>Economic critics </B>
<P>Shadow chancellor George Osborne said Mr Brown had been "living in a=20
dreamland" over the economy and had at last "woken up".=20
<P>"It is vital that he takes urgent steps to curb the growing waste of =
public=20
money and follows the advice that everyone from the IMF to the =
Conservatives=20
have been urging," he said.=20
<P>This was: "Get a grip on public spending and get the public finances =
under=20
control."=20
<P>And Liberal Democrat Treasury spokesman Vince Cable said: "Gordon =
Brown is in=20
serious trouble for the first time as Chancellor because of problems of =
his own=20
making."=20
<P>He claimed Mr Brown had relied too much on upbeat Treasury forecasts =
and was=20
now having to "eat humble pie".=20
<P><B>'Faster than others' </B>
<P>IMF experts believe the UK's gross domestic product (GDP) will grow =
by 1.9%=20
in 2005, compared to the 3-3.5% predicted by the Treasury.=20
<P>The BBC's Guto Harri said Mr Brown will now have to "downgrade" his =
forecast,=20
to the delight of his critics.=20
<P>He said the chancellor's reputation will "take a knock".=20
<P>Mr Brown will make his speech during the annual meeting of the IMF in =
Washington.=20
<P>As well as rising oil prices - which have trebled since 2002 and =
doubled=20
since last year - he will also highlight the performance of the world's =
economy.=20
<P>However, Mr Brown will state low inflation and record employment will =
prevent=20
the UK sinking into recession.=20
<P>He will say: "Britain is continuing to grow faster this year than the =
other=20
major European economies, all of whom are forecast to grow by less than =
2% with=20
just 1.2% growth in the euro area."=20
<P><B>Domestic factors </B>
<P>The British Chambers of Commerce (BCC) said it was not surprised by =
Mr=20
Brown's speech, as it had always predicted slower growth than the =
Treasury.=20
<P>Director general David Frost said: "While high oil prices and low =
European=20
growth are clearly important factors accounting for lower UK growth in =
2005, it=20
is important to bear in mind the dampening domestic factors".=20
<P>These were "a sharp deceleration in consumer spending growth, a =
rapidly=20
weakening housing market, and worrying signs of falling business =
confidence," he=20
said.=20
<P>The BCC called for the Bank of England to cut interest rates if =
economic=20
circumstances worsened, and also urged the chancellor to boost business=20
confidence by not introducing more taxes.=20
<P><B>On Sunday 25 September 2005 at 22:15 BST on BBC One Panorama will =
be=20
assessing Gordon Brown's performance since 1997, in Brown's Miracle =
Economy.=20
</B></P></DIV>
<DIV class=3Dfooter>Story from BBC =
NEWS:<BR></DIV></FONT></DIV></BODY></HTML>
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| User: "Tom" |
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| Title: Re: The failing EU economy |
24 Sep 2005 11:19:31 AM |
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Lesser growth than expected doesn't equal failure, you dumb *****.
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