In its latest European Economic Outlook, PwC painted a bright picture of the UK environment. All major sectors of the economy strengthened significantly during the course of 1999 and GDP growth for the year as a whole is estimated at just under 2%, it said.
‘Our main scenario envisages GDP growth picking up to around 2.75% in 2000, although there are both upside and downside risks to this projection,’ the report said. ‘There have also been clear signs of recovery in the UK, where growth rebounded strongly in the second and third quarters.’
But warning against ‘excessive’ interest rate rises, PwC added: ‘Consumer price inflation has remained subdued and should rise only mildly during 2000, but some further tightening of onetary policy is likely.’
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