Posts Tagged ‘Economy’

10 Reasons for Economic Optimism

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May 7, 2011 · by Ray · Economy

1. The world economy is booming.

2. The US economy is growing strongly again, too.

3.  Economic miracle in Germany. Almost unnoticed behind the noise of Europe’s sovereign debt crisis, an economic miracle is taking place in Germany.

4. The euro crisis is abating.

5. The banking system is returning to health.

6. Business awash with cash. Business is  never more flush with cash, only awaits the right signals to invest it.

7.  Employment prospects are improving.

8.  Manufacturing is improving. Boosted by the weak pound, manufacturing is experiencing something of a renaissance.

9. UK Business confidence improving driven by anticipated. strong dividend payments. After two years of famine, UK dividend payments are expected to rise strongly this year. It’s another sign of returning business confidence and provides a boost for both investment and spending.

10. Growth package expected from Government. This is more in hope than expectation, but the Government has been stung by criticism that it’s been so busy with the deficit that it has forgotten about a growth strategy. A reasonably credible package of supply side reforms and tax incentives, including the re-establishment of regional enterprise zones, ought therefore to be forthcoming in the March Budget. Let’s hope it provides the “signal” the private sector is looking for. What we know is that this has to be an investment and export-led recovery. It’s going to get little support from consumption, which is where most of the pain of adjustment has yet to fall.

See Jeremy Warner Telegraph for full article