26/07/10
Latest Ernst & Young ITEM Club Forecast
According to the latest E&Y ITEM Club Forecast, the fiscal tightening implemented by the coalition government will not endanger economic recovery.
The report described the Chancellor's 5 year plan to cut the deficit as "ambitious" but achieveable.
Nevertheless, it did raise concern with the "escalating European crisis" which could significantly damage recovery:
"Retrenchment in the Eurozone, the UK's biggest trading partner,[could] erode demand for UK exports and weaken competitiveness".
Source: Ernst & Young ITEM Club Forecast