David Smith | Economic Outlook
Inflation falls sharply, real incomes soar, businesses invest, consumers spend money, and interest rates are lowered.This is the government’s dreamland of his 2024 – and for some it’s a fantasy
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Narration by David Smith
LIn my first column for 2024, I will begin by sharing my vision for the UK economy this year. That’s not the only vision, but some pray it becomes a reality.
It starts with a very sharp decline in inflation after falling to 3.9% in November. It then drops quickly to 2% within a few months, which has some positive economic effects.
The real incomes of salaried workers and recipients of national pensions and benefits have increased significantly, supporting strong growth in personal consumption.
The Bank of England has been scratching its chin for some time, predicting it won’t return to its 2% inflation target until the end of 2025.