UK is sluggish on growth but could continue until 2020
Innis Asset Management has announced that it expects the UK's sluggish growth rate to continue until 2020, which may prompt many investors to make an international money transfer to other markets.
The company's chief economist, Stuart Thomson, said that the group expects the UK's economy to grow by 1.1 per cent during 2011 and by 1.3 per cent in 2012.
"The current growth rate is as good as it will get for the remainder of the decade," he explained, pointing out that that the economy grew by just 0.2 per cent during the second quarter and only by 0.7 per cent the previous year.
Data from the Office for National Statistics (ONS) estimates that "special factors" hindered growth by 0.5 per cent during the second quarter and the group paints a rosier picture of the UK's future growth prospects.
Among the "special factors" that limited growth are the extra bank holidays for the Royal Wedding, withdrawal of funds for Olympic tickets, supply issues due to the Japanese earthquake and the unseasonably warm weather in April.
Mr Thomson objected: "The ONS only has about 44 per cent of the necessary data available at the first estimate and in this event appears to have erred on the side of optimism."
He claimed that predictions from the Bank of England's Monetary Policy Committee (MPC) could likewise not be trusted because it had taken all aforementioned factors into account and adjusted for them.
"The Bank has been consistently optimistic over growth over the past three years," He added.