views

ANALYST VIEWS: DO YOU EXPECT THE UK ECONOMY TO STEADILY IMPROVE FROM HERE?

<strong>AMIT KARA </strong>UBS<br />We expect economic activity in the UK to expand by 1.1 per cent in 2010 instead of our earlier above-consensus forecast of 0.6 per cent. The UK will see an export-led recovery, which should benefit sectors such as pharmaceuticals, chemicals, aircraft manufacture and financial services. <br /><br /><strong>PHILIP SHAW </strong>INVESTEC<br />We have revised up our GDP forecast for 2009 to &ndash;3.6 per cent. It represents our first upward GDP revision since the credit crisis began. We are looking forward to heralding a recovery later in the year but will be hesitant to open the champagne for a while.<br /><br /><strong>MICHAEL SAUNDERS </strong> CITIGROUP<br />The worst may be over. However, the end of recession will likely not bring an end to the UK&rsquo;s economic problems. Nor is recovery likely to be strong and robust. Even once recession ends, the UK&rsquo;s financial system is likely to remain impaired and credit availability will stay poor.