UK faces zero growth for next five years - Arbuthnot

The UK is heading for zero average GDP growth over the next five years, according to the chief strategist at Arbuthnot Securities.

James Ferguson said UK banks are only halfway through the deleveraging process, which can take five to six years, so economic growth in the country will be around zero for the next five years. "I do not think people appreciate how low growth will be. Public and private sectors cannot both run a surplus and if the public sector runs less of a deficit, GDP growth must contract," he said. His comments come just days after Capital Economics revised long-term gilt yield forecasts in response to the "deteriorating prospects for the UK economy". The firm said it expects 10-year yields to dro...