Saxo Bank confident of recovery

THE ECONOMIC recovery is set to continue in Britain this year as a result of the government’s fiscal austerity measures, according to Saxo Bank.

The Copenhagen-based lender said “impressive” austerity measures would help the economy hit two per cent GDP growth for the year, despite tough budget cuts.

The bank said the global economic recovery would continue throughout this year, yet warned governments were delaying an inevitable period of deflation needed to cleanse structural debt caused by the previous financial crisis.