Survey suggests UK economy is still resilient

A new survey from the Organisation for Economic Co-operation and Development (OECD) has suggested that the UK’s economy is out-performing those of most other developed countries.

While still emphasising such factors as the adverse strength of sterling, the survey revealed that Britain is in a much more advantageous place to weather the international economic downturn than its neighbours. Pinpointing how a slow decline in growth and low unemployment has seemingly failed to set off inflationary pressures, the report paints a picture of Britain as resilient in the face of outside forces.

Acknowledging that the strength of sterling will make it difficult for the UK to successfully compete on overseas markets, the survey suggests that further cuts in interest rates may be required, in the absence of the pound experiencing some degree of devaluation.

However, in line with a recent report from the CBI, the OECD also predict the UK economy will experience a comeback in 2003, in part due to the Chancellor’s efforts in refocusing Government spending.

But the situation could always be better, the report points out, citing the staidness of Britain’s business environment as hampering productivity in the private sector, thereby failing to produce results to match the Government’s wordy ambitions, thanks to that repeat offender - unnecessary red tape.

Calling for greater openness to competition, the OECD welcomed the news that the Government could be about to review company law, bringing this aspect of the economy into the light and into the modern world. (CL)