The next couple of months are going to be the best for Britain as hopes for the country’s emergence from the economic slowdown are finally gathering speed. The recent boost has come from the Paris-based think-tank OECD (the Organisation for Economic Co-operation and Development). The organization says that British economy will continue doing well in the rest of the year.
House prices, car sales, and manufacturing have received attractive growth which shows that the national economy is on the right path. Manufacturing has got maximum kick as it hit its highest level in 21 years. The data shows that new car sales went up 12.7 per cent. Similarly, the prices for houses went up £10,000, an excellent indication that it will help the national economy.
The ONS also declared that exports have increased to record levels as they went up £26.9bn, up by £1.3bn from May in June. The signals such as a rise in gross domestic product in the second quarter and increase in new jobs seem to have pushed demand for houses.
Economists also believe that government schemes such as the ‘Funding for Lending Scheme’ and the ‘Help to Buy’ equity loan scheme, too seem to work well to raise the demand for new homes. In consonance, the Bank of England also increased its forecasts for economic growth this year and next.
Several economists view that the economic-growth has been made possible by Mark Carney, the new Governor of the Bank of England. The economists supporting the view that Mark Carney is doing a good job are of the opinion that his promise that he will keep interest rates at their current record low for at least three more years has been well accepted.
The data from the OECD reveals that Britain has got a rise in its composite index from 100.6 in February to 100.8 in June. The new governor of the Bank of England Mark Carney has also approved the government’s strategy and has stated that the national economy is on a recovery path as several sectors are faring well.
The treasury department is willing to take the tough decisions to right what went wrong in the UK economy as the government is willing to deliver sustainable jobs and growth. Critics on the other hand opine that the government should focus on providing industrial training and helping those who drop out from schools, for sustainable growth.
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