UK economy; flying blind?

Article Abstract:

As sterling has left the Exchange Rate Mechanism (ERM) other factors have come into play. The government are still anxious to keep inflation down, but leaving the ERM has meant other indicators are being watched, including property prices and asset rates. Recovery from the recession might be affected by a further increase in the trade deficit, which reached 12 billion pounds sterling in 1992. The funding of the public sector borrowing requirement is also giving cause for concern. Forecasts for the UK economy's performance show the expected trends.

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UK economy; what sort of upturn?

Article Abstract:

The UK economy was expected to show growth of 1.25% in 1993. Consumer spending, especially on items such as cars and houses, rose in the first quarter of 1993. Personal debt levels have grown in line with income increases, possibly in connection with the falling levels of unemployment. This may lead to lower levels of saving. There may be capacity for growth in manufacturing and in the economy at large. There is concern that recovery may be linked with a deterioration in the budget deficit.

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