THE TELEGRAPH: Britain's fledgling recovery may be nipped in the bud by the savage cuts planned to grapple with the mountain of public debt, the International Monetary Fund has warned.
Official figures on Thursay provided the first clear evidence of positive momentum in the economy, but forecasters warned of "headwinds" from planned tax rises and spending cuts to shrink Britain's £155bn budget deficit, and the IMF on Thursday slashed its growth forecasts for the UK.
Manufacturing posted its fastest annual growth in more than 15 years, according to the Office for National Statistics, while economic output in the three months to June was the strongest it has been since the recession struck, the latest monthly estimates from the National Institute of Economic and Social Research (NIESR) showed.
However, NIESR warned of "headwinds [as] fiscal consolidation both in the UK and the euro area restrict growth". "There is clearly a risk that this rate of growth will not be maintained through the rest of this year," the economic forecaster said. >>> Philip Aldrick and Angela Monaghan | Friday, July 09, 2010
