- Organisation for Economic Co-operation and Development
The latest poll compiled by Ipsos Mori– a leading market research company in the U.K., showed that British people are now much more optimistic about the economy that at any time in 36 years. The labour market is on the mend with soaring job vacancies, skill shortages are commonplace, while almost all sectors are posting solid growth. The turnaround came very fast, as last year everyone feared of the triple-dip recession. But while domestic economy is doing well, global risks are weighing on the recovery.
Chinese economy is slowing and the credit has grown by almost 100% since the collapse of Lehman Brothers. But due to the stringent capital controls and the fact it is still a largely closed economy, it will be Chinese affair, not a global one. Europe, in contrast, is a greater threat to Mr. Carney. By the pledge to do whatever it takes, Draghi has succeeded in calming the storm. Now he is preparing for another step, however it is likely to be too tiny and too compromised to have a meaningful effect. The ECB is likely to grip its insolvent banks, and the longer it prevaricates, risks are posed to the economy. The latest GDP and inflation figures are adding more pressure on the central bank. Back in 2011, more than a half of the U.K. goods exports were to other European countries, while more than 3.5 million jobs are linked directly and indirectly to the trade with the EU. Therefore, the U.K. economy is highly dependence on the performance of its neighbour.
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