UK recovery "subdued" for two years

Most Popular posts from other blogs...

16 March 2011, last updated at 19: 10 GMT the OECD said the British economy has become partly thanks to too much borrowing of balance. The UK economic recovery with government expenditure growth remain subdued for two years reductions and a slowdown of world trade with a weight of down, says a report.

The Organization for economic cooperation and development (OECD) growth estimated this year by 1.5% to 2% in the year 2012.

Prognosis is the independent Office for budget responsibility for 1.9% growth this year.

The OECD called the Government cuts "ambitious and necessary".

It said they were required to achieve a sustained recovery.

The wording is slightly different to a previous OECD report on the UK economy, if it called them "significant but necessary".

The body, which is known to consult the Governments of the countries which it monitors, also suggested that interest rates should stay low.

The OECD warned that strong economic growth in the run-up to the recession 2008 / 09 had hidden a "significant imbalances", building a undue reliance on the financial sector, create booming asset prices and too much borrowing.

Spending cuts are necessary to address these disparities, he argued.

Reforms

He also said that reforms, should take place on the housing market with the aim of reducing the prices of assets and increasing affordability.

Continue reading the most important story

[OECD] report regime reserves his sharpest language for the State of British housing market and the planning "

end quote Stephanie Flanders Economics Editor, BBC News education, should be reformed also on resources focus on disadvantaged children."

The Organization, the server data on countries their aim of promoting economic progress and international trade, said: "monetary policy should remain expansionary, even if overall inflation well above target, to support the economy."

"All in all is a muted recovery in the next two years."

The Chancellor, George Osborne, said the OECD report was a validation his Government plans for the country: "the budget [23 March] is echo, what I as the central message of this OECD report find under." "This Government has the right course for the British economy, but we have to do so much more."

Labour's Shadow Chancellor ED said balls but he thought that the OECD report was further evidence that Government was economic policy on the wrong track.

"In the real world are evidence that his reckless plan, cut you deeper and faster than any other major economy in the world doesn't work," Mr said balls.