In the past couple of months we have seen a number of positive reports claiming that the UK economy is starting to become even more stable, and now it has been revealed that the UK is actually improving much faster than its European counterparts. According to a report released today by the Organisation for Economic Cooperation and Development the forecast for growth in the UK during 2013 is 0.8 per cent, while for Europe the economy is set to decline by 0.6 per cent.
Discussing the findings, the Organisation for Economic Cooperation and Development’s chief economist, Pier Carlo Padoan: “The British economy is recovering slowly and that reflects the fact that Europe is doing poorly. Growth is expected to pick up gradually through 2013 and 2014. Continuing to shift the composition of public expenditure in favour of infrastructure investment would enhance growth prospects.” Meanwhile, the deputy chief economist, Jorgen Elmeskov, said: “We are perhaps somewhat doubtful [as] to the idea of ring-fencing certain spending areas. That tends to lead to deeper cuts in other areas which may not be warranted.”
“You may or may not want to cut down less on health than on other areas, but that should be a result of an assessment of the costs and benefits of doing it, not because you carve out health and thereby impose bigger adjustments on other expenditure items.” This report will come as good news for the Coalition government, especially as it proves that George Osborne’s austerity plans seem to be working, and even though most people aren’t happy with having to cut back this report means they cannot deny it was a good idea.
This new report is also good news for those in the private rented sector, especially if it means that they government will continue to invest in infrastructure and create more private rented accommodation. Not only will this boost the economy, but also help alleviate the current housing crisis meaning that private landlords will be under less pressure and could even expand their property portfolios in the future. Hopefully, this news will also lead to landlord insurance premiums decreasing as there will be more competition and less risk in the market, and some banks may even be willing to offer more competitive buy to let mortgages.