Wednesday, 14 April 2010

Economic recovery in motion but UK faces election hurdle

"LONDON (Reuters) - Britain's economic recovery should progress slowly and steadily but an indecisive general election could yet spoil this view, a Reuters poll showed on Wednesday.The survey of almost 60 economists showed economic growth loitering around 0.4 percent to 0.6 percent in each quarter until the end of next year.The median forecasts looked very similar to those seen in the last poll taken in March, with full-year growth forecasts of 1.1 percent for 2010 down slightly from 1.2 percent in the previous survey, and 2.3 percent for 2011 unchanged.But as in March, some respondents said the prospect of political impasse if the May 6 election delivers a hung parliament could endanger their forecasts for Britain's recovery from its deepest post-war recession."The UK could wake up on May 7 and find itself in a state of paralysis, while gilts and sterling sell off," said Azad Zangana of Schroders Investment Management."

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