UK Market
UK Economic Outlook 2011
Most economists expect UK economic growth in 2011 will slow the growth rate will be between 1.5-2.5. The strong growth in 2010 was mainly due to inventory rebuilding surge in construction output, the former Labor government policy of quantitative easing and fiscal stimulus driven recovery in the manufacturing sector, the pound devaluation to promote exports. However, these short-term growth factors will be gone in 2011; the same time, reduced public sector spending, tax increases, employment and wages low, the consumer crunch, weak demand in major export markets, the euro area and other obstacles, the British economy will be difficult.Drive the UK economic recovery and growth Troika - consumption, investment and exports - in 2011 are in the weak and vulnerable state. Public consumption because the British coalition government to slash public spending and in contraction among the weak job market, private consumption because, weak income growth and private debt burden while at the freeze; public investment because the British government is reducing the fiscal deficit and tenuous, private poor investment because the economy is hemmed in, banks are still deleveraging process is still reluctance to lend; dragged down by the debt crisis in Europe, Britain's major export market demand is still insufficient, the export role in boosting the UK economy in 2011 will be weakening.
Britain is a small open economy, more than 70% of its export market, exports to Europe, so the debt crisis in Europe, imported inflation and banking crises are likely to flow through trade, financial markets and corporate mentality with wide-ranging impact. UK's largest 100 listed companies with the global trend of solidarity, four-fifths of its revenue from international markets. Weak external demand and external financial turbulence will give a negative impact on the UK economy, the biggest external risk is outside the euro area countries' debt crisis. In addition, global commodity prices will bring inflation to the British.
2011 The main risks facing the UK economy, including: insufficient economic growth, imported inflation, house prices fell seriously high unemployment, commodity prices and consumer confidence continue to frustration. Economists generally concern is not enough to compensate for private sector growth in public spending cuts to bring the economic contraction and job losses.