Britain heading for rebound from recession
The end of the 2012 Olympics has left economists more uncertain than ever about the Games’ boost to Britain’s economy, although most agree they will help thrust the country out of recession, a poll showed today.
The UK economy has been shrinking since late 2011, bruised by the Eurozone’s debt crisis and austerity measures at home that have sapped domestic demand.
But it should grow again this quarter by a hefty 0.7 per cent, the same amount it likely contracted by in the second quarter, according to the poll of more than 60 economists.
Still, that consensus concealed a huge amount of uncertainty about Britain’s economic performance.
Forecasts for economic growth this quarter ranged from a 0.3 per cent uptick to a stellar 1.7 per cent surge, suggesting economists are having a particularly hard time gauging the effect of the Olympics.
Stephen Lewis, chief economist at Monument Securities, argued the Games were probably a secondary factor behind any rebound for Britain’s economy.
“It’s hard to assess what the Olympics bounce will be, but in any case I think it should be much less than any working day effect,” said Lewis.