Artificial economic boom in the UK economy? According to a - TopicsExpress

Artificial economic boom in the UK economy? According to a report in todays Independent on Sunday, the Government has managed to puff up a pre-election boom but the 5pc year-on-year rise in retail sales in the fourth quarter of 2014 and the current account deficit, at 6pc of GDP, are unsustainable. The idea that the UK is in a boom suits neither the Conservatives nor Labour ahead of the election. The big question is how the boom will end: the best case scenario would be for investment and exports to replace domestic growth, with unemployment dipping below 4pc; the worst case would be a snap in inflation, leading to a faster-than-expected rise in interest rates and a fall in asset prices, including property.

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