* Last week's GDP figures show that the UK economy has
emerged from recession. It grew by 1.0% in the third quarter, the
fastest quarterly pace in almost five years and a stronger reading
than expected.
* However, stripping out the effects of one-off factors such as
the Olympics, growth was closer to 0.3% - still positive, but
hardly strong.
* Immediate prospects for the UK economy are mixed. The consumer
sector is showing signs of growth. But the economy faces strong
headwinds - from the euro crisis, the squeeze on public spending
and a fragile financial sector.
* Earlier this month, Lord Adair Turner, chairman of the
UK's Financial Services Authority and a leading candidate to be
the next governor of the Bank of England, raised doubts over growth
the pace of the UK recovery. He warned that the process of debt
reduction for businesses, households, banks and the government
could depress growth for many more years.
