In some of his most positive comments since the economic crisis, Bank of England Governor, Sir Mervyn King has declared economic recovery for the UK is now firmly "in sight".
King has claimed "there is momentum behind the recovery that’s coming" and that "good progress" has been made in the last few years to providing a new, sustainable economy for the United Kingdom.
He added: "I think that during the course of 2013 we will see the recovery come into sight.
"If you take away what happened in the North Sea oil production and in construction, the UK economy last year grew by 1.5 per cent."
Overall, the national economy grew by 0.2 per cent in 2012, according to the latest official data, and is expected to grow by 1.2 per cent this year.
The Governor also revealed he has held discussions with the Chancellor and the Prime Minister about the coalition’s economic strategy, having pressed for more supply side reforms; potentially involving improving the economy’s credit supply.
It is widely expected that the Treasury will extend the Bank’s Funding for Lending cheap credit scheme or give it new powers in a bid to further stimulate business growth, potentially alongside an altered inflation target.
Despite claims as recently as November from King that the nation "may be in for a period of persistently low growth" the Governor revealed yesterday that a vital rebalancing of the UK economy from consumption to exports was in fact on schedule.
"We’re making good progress towards that re-balancing," added King.
"Policies are in place to achieve it. We are on track to achieve it. Recovery is in sight."
Image: The CBI
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