UK is set for steady but slow growth

THE British economy is set for “a slow but stable pace of expansion,” the Organisation for Economic Co-operation and Development (OECD) said yesterday.

“The OECD indicator is consistent with the view that a modest economic upturn remains intact for the UK, despite a GDP contraction of 0.6 per cent in the final three months of last year,” commented Howard Archer of IHS Global Insight.

However, the UK’s prospects remain below those in some OECD member states such as Germany and the US, where “robust expansion” is forecast.

The US indicator jumped by 0.6 points in January, recording a score of 103.2. The UK’s indicator has remained steady for three straight months, at 101.9.

All scores above 100 point to above average growth. The indicators attempt to predict turning points in economic activity six months ahead.

“We project British GDP to grow by 1.6 per cent in 2011,” Archer said.

The latest figures bode well for the global economic recovery, with monthly upturns across the OECD area, and specifically in Europe and Asia.

January’s scores were up 0.4 points against the previous month, throughout the OECD’s 33 member countries – an annual improvement of 2.1 points, clearly indicating expansion.