By TraderVox.com
Tradervox.com (Dublin) – The UK economy is set to improve as signs of global economic growth are eminent. In the past few weeks reports from leading economies in the world has indicated an improved economic situation which analysts are taking as a sign of stable global economic condition. The recent news from Greece has given hope to the GBP and the UK economy is set to avoid recession.
The Confederation of British Industry expressed optimism of improved recovery and has also understated the need for quantitative easing by the Bank of England. CBI Director General Mr. John Cridland said that there are signs of optimism and he expects to see some marginal growth in the economy this quarter. He stated that in their growth forecast, they do not see any need for another QE from the BOE.
The UK economy had been affected negatively by the euro-debt crisis which resulted to a decreased economy in the fourth quarter. This necessitated the bank of England to make bond purchases on the 9th of February this year. According to Cridland, the signs of recovery from the Greece debt crisis and the positive sentiments from major world economies show resilience hence optimism in the prospect of the UK economy.
He also added that the recovery of the UK economy will depend on the successful resolution of the Greek debt crisis. The approval of the austerity plan by the Greek lawmakers has been seen as one of the signs that the crisis is headed to successful resolution. Another sign that has been central to the recovery prospects is the advancement of the stocks. The MSCI All-Country World Index gained .5 percent while the Stoxx Europe 600 Index increased by .8 percent.
The successful weakening of the yen through government intervention is also another sign of Japan’s economic recovery. The UK economic forecast has picked up among the members of CBI following those efforts as well as the ECB’s decision to increase liquidity to the banking system in the Eurozone. The signs of improvement in the euro area, US, and Germany signal an improved global economy which is conducive for UK economic recovery.
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