Opinion: Turning a corner or going round the bend?
Whether you're turning a corner or going round the bend all depends which side of the political fence you sit on, says Andy McLaughlin of Astute Wealth Management.According to Chancellor, George Osborne, speaking today, “the UK economy is turning a corner”, though many people may agree with Ed Milliband’s view that “for ordinary families, life is getting worse”. However the evidence is starting to stack up to indicate an improving trend.
The Organisation for Economic Co-operation and Development (OECD) have revised their growth forecast from 0.8% to 1.5%, & GDP figures show growth of 0.7% in the second quarter of 2013 with some forecasters predicting that it may increase to 1% in Q3.The British Chamber of Commerce have revised their growth forecast from 0.9% to 1.3% & UK exports are now at their highest level since 2007. They also report over 400,000 new businesses being started each year, perhaps the old catchphrase about “necessity being the mother of invention” has awakened the entrepreneurial spirit in people, & whilst around 20% of start-ups fail in the first year, many of the remainder will grow & flourish, with some becoming the success stories of the future.
So though it seems to be like turning round a super-tanker, economically things finally seem to be heading, albeit slowly, in the right direction. George Osborne will certainly be hoping that by the next election in May 2015, the feel-good factor will have returned to enough of the electorate to restore him to government.