The National Accounts published at the end of last year left the economy looking better-balanced than before. The balance of payments deficit should have recorded the smallest deficit last year since 1998, while the household saving rate rose above its long-run average in Q3. (See Chart.) What’s more, the latest data are consistent with the economy growing again by the end of 2009. But there are a number of clouds on the horizon, including a fiscal squeeze, possible relapse in the labour market and renewed house price falls. We still expect GDP growth of just 1% in 2010.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services