LV: UK economic growth will persist

Date: 24th May 2011

Small businesses in operation throughout the UK could be among those encouraged by the recent comments of one expert.

Liverpool Victoria (LV) has claimed that the UK has learned its lesson from history, meaning the current economic recovery is poised to persist over the coming months.

According to the firm, while recent economic growth may be seen as disappointing, it compares well with past UK recessions.

The organisation also claimed that growth seen since last summer has not been "as bad as numbers suggest".

Nigel Bradshaw, economist at LV Asset Management, said: "Looking forward the story has not changed. Growth will persist, albeit at sub-trend levels whilst the economy has to battle the headwinds of fiscal tightening and strong externally generated inflation.

"These effectively act as a further tax on consumers, although the recent setback in commodity prices will be helpful if it persists."

It comes as recently-published employment figures revealed that UK unemployment fell 0.1 per cent to 7.7 per cent in the three months to March 2011.

Posted by Emily Smith