A slowdown to 0.5% from 0.7% in third quarter disappoints City analysts but George Osborne insists recovery is on trackBritain’s economic recovery slowed in the fourth quarter of 2014, but annual growth was the fastest since the financial crisis of 2007.With 100 days until the general election, evidence of a slowdown and continued reliance on consumer spending to drive the recovery will come as blow to George Osborne. But the chancellor seized on news that, at 2.6% in 2014, the UK’s growth was the “fastest of any major economy”. That also marked the strongest growth since 2007. Related: Economy slows down as election nears – not what George Osborne wanted “The eurozone is potentially entering a new phase of political uncertainty arising from the anti-austerity Syriza party victory in Greece. The upcoming general election in the UK also poses a threat to stability in the event of an inconclusive outcome. There’s also the possibility of financial market stress if the US starts to hike interest rates later this year, and geopolitical risks such as the escalation of the Russian-Ukraine crisis likewise pose a threat to global stability.”“With UK manufacturers entering 2015 in a more cautious mood, given some of the risks in the global outlook, the next 100 days of election campaigning need to shed more light and certainty on the priorities for business growth, investment and job creation.” Continue reading...
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