Recovery to be sluggish for UK: OECD
19 Mar 2011
Britain's economic recovery is expected to be sluggish and long drawn compared with previous upswings, according to a leading international organisation, as growth takes a hit with austerity measures and lacklustre export performance.
The Organisation for Economic Co-operation and Development's (OECD) two-yearly survey of the UK economy, projects slow growth in 2011 and 2012, to be followed by a weaker medium-term outlook than the expectations by either the Office for Budget Responsibility or the Bank of England.
The Paris-based body, however, still supports the austerity plans, saying there is no realistic alternative. OECD secretary-general Angel Gurria unveiled the report on Wednesday in front of George Osborne at the Treasury with the message: "UK: stay the course."
Not surprisingly therefore Osborne supported Gurría's calls for Britain to free up its planning system. Additionally he called for Britain to increase educational opportunity for poor children and improve vocational training.
Osborne said: "This government has set the right course for the British economy but we have so much more to do. We will stick to the course we have set out. The mission of this year's Budget is to move from rescue to reform."
Dismissing Labour's calls for Osborne to slow down on his deficit reduction plan, he said that Gordon Brown's government had left the country with too much borrowing before the financial crisis struck.
