Boston, MA -- (SBWIRE) -- 02/17/2014 -- The economy is recovering, but with fiscal cuts looming and unemployment stubbornly high, the rate of growth will be fairly tepid by historical standards.
In light of positive structural economic reforms undertaken by the government, coupled with flexible monetary and exchange rate policies, we remain bullish on the long-term economic prospects for the UK relative to the eurozone over the longer term.
Despite numerous divisions between the ruling Conservatives and Liberal Democrats, we expect the coalition government to hold firm through to the next parliamentary election in 2015.
Major Forecast Changes
We have revised up our 2014 real GDP estimate to 2.1% from 1.8%.
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