World’s woes drag down UK growth
The forecast said growth in the UK economy will remain sub-par, as growing global concerns and the European sovereign debt crisis increase uncertainty among the business and investment community.
It added that while world trade has now surpassed 2008 peaks and UK exports are back to pre-recessionary levels, boosted by the devalued pound, the lack of a resolution to the sovereign debt crisis has caused many businesses to hold back investment.
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Hide AdPeter Spencer, chief economic advisor to the Ernst & Young ITEM Club, said: “The UK economy has hit a critical juncture.