David Blackburn

EU revises British economic forecasts up

EU revises British economic forecasts up
Text settings
Comments

Faisal Islam has the story that the EU has revised Britain’s economic prospects up to 1.2 percent in 2010 from 0.9 percent. Next year, the EU predict to 2.1 percent, the highest of major European nations.

Is this a crumb of comfort for Brown? Well yes, but the EU’s predictions are still someway off Alistair Darling’s forecasts. His growth prediction for 2010 is in the region of 1 percent to 1.5 percent, which is closer than his predictions for 2011, when he expects GDP to increase by 3 percent to 3.5 percent. In any event, the upgraded figures are probably too small to shift the polls at this stage.

PS: I should point out that these are revisions, and that the pound is still in freefall against the euro, so the outlook is still perilous for Brown et al, and of course for Britain. Here's a graph of the Pound versus the euro, and one for the euro versus the Pound beneath that. (Apologies if the graphs seem misleading - for some reason the currency headings are the wrong round. The blue text on the right hand side above each graph leads you to the other set of indices.)

                        -----------------------------------------------------------------

FRASER ADDS: The European Comission also forecast that the prize for the biggest deficit this year goes to not Greece but Britain (graph below, courtesy of Citi)