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Bank bail-outs ‘are stalling UK recovery’
Tuesday, August 18th, 2009Britain is taking longer to come out of the recession because it has spent so much money aiding financial institutions, one expert has suggested.
Senior Analyst for currency exchange company Caxton FX Duncan Higgins stated that the £1.5 trillion given to banks has caused a discrepancy in the budget.
"This rising deficit has repelled both consumer and investor confidence and prevented Britain from achieving similar rates of recovery [to other countries]," he said.
His comments come after Japan revealed it has seen its gross domestic product (GDP) grow by 0.9 per cent, while France and Germany both posted a 0.3 per cent rise in GDP for the second quarter of 2009.
All is not doom and gloom, Mr Higgins explained, as Japan’s recovery was linked to its government’s stimulus programme, which bodes well for Britain’s quantitative easing measures.
The British Retail Consortium recently revealed that consumers are still reluctant to spend, with many only spending on essential items such as food during the current economic climate.
By Francis Finch
