Foreword
John Connolly
In this Review, Roger Bootle, Economic Adviser to Deloitte,
turns his attention to how the economic recovery will fare during
the new year. While he thinks that the road to health will be a
bumpy one, he is optimistic that stronger and better-balanced
growth will result eventually.
Roger thinks that the recovery will struggle to maintain its
recent momentum in the coming months. In particular, he doubts that
the private sector is in a fit enough state to compensate fully for
the fiscal squeeze that is set to get well underway this year. He
expects GDP growth of just 1.5% in both 2011 and 2012.
But the recovery in some parts of the economy will keep getting
stronger. Roger thinks that business investment is the area likely
to see the strongest growth over the next couple of years, partly
because firms will invest in new capacity in order to exploit the
opportunities created by the drop in the pound.
