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Rebalancing knocked off course

On the face of it, hopes that the UK economy is finally ‘rebalancing’ were given a shot in the arm last week with the release of the Economic Accounts and Balance of Payments figures. However, a closer look suggests that progress has been piecemeal compared to the scale of the rebalancing required and has recently halted, in part due to the deepening of the euro-zone debt crisis.

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