Signs of growth

While the mood music from the Conservative Party is rather doom and gloom at the moment, two respected economic forecasters have become more positive on the UK economy.

The OECD believes the UK economy will grow faster than other G7 countries.  The National Institute for Economic and Social Research believes the UK economy grew by 0.4% in the first quarter of this year, the same as in the last three months of 2009.  When we consider, as the NIESR notes, that in January we were hit by heavy snow that points to a higher rate of growth later in the quarter.

These are only forecasts of course.  And the recovery is only just beginning and must not be threatened by harsh spending cuts this year as called for by the Conservatives (which means also job cuts).  But they do point to Labour having made the right economic policy decisions ie a firm plan to reduce public debt combined with a concern and measures to promote recovery and employment.