Indebted consumer hindering UK growth

The various government and Bank of England stimulus measures implemented over the past 12 months have undoubtedly prevented the UK economy from experiencing the scenario of doom many market commentators predicted at the beginning of 2009.

Indeed, UK growth has been re-established in Q4 09, albeit at a modest 0.1% year-on-year expansion rate, according to GDP data. Encouraging as the economic recovery may be, long-term challenges need to be addressed before it can be confidently claimed the UK has entered growth mode. For instance, during 2010 the BoE is expected to begin withdrawing the stimulus measures that helped the UK equity market to rally. It remains to be seen if the economy can continue to show signs of recovery without these unprecedented stimulus measures. In addition, the uncertain outcome of the upcoming e...