Press Room.
Grant Thornton's Chief Economist Comments on Q1 2010
Preliminary Growth Figures
"With all the attention firmly focused on the
election, this is a make or break moment for the Prime Minister.
Fortunately for Gordon Brown, today's GDP growth of 0.2% means he
can continue the election campaign knowing that the economy is
still just about on the slow road to recovery.
"Today's very limited growth has shown that
the UK has managed to stay out of a recession, but any political
uncertainty and tomfoolery post election are certain to cloud the
recovery.
"I expect the financial markets to react badly
if there are no immediate plans after the election to reduce the
deficit. The UK's credit rating will suffer and interest rates paid
on mortgages and loans will rise. In many ways, the economic
recovery hangs on the outcome of the election.
"With unemployment refusing to come down and
the availability of credit sparse, consumer spending will be
cautious and business investment constrained, all factors likely to
hold back the economic growth for the rest of 2010.
"Whilst these figures are likely to be revised
upwards, it will only be after the election when further tax
increases and spending cuts are announced that any true assessment
of the path to recovery will be possible."
ENDS
For further information, please
contact:
Suvra Datta, Grant Thornton press office, 020
7728 2375 or via email on suvra.datta@gtuk.com