Exports keeping UK out of recession

IPPR Chief Economist, Tony Dolphin, said:

"The government has said it wants to rebalance the economy away from debt-funded domestic spending and towards exports. The export side of this shift is progressing well and lending figures show that increases in debt across the economy are modest.

"The problem is that confidence is low and real incomes are contracting, so households and businesses are now reducing their spending.

"This was not part of the plan. Increased certainty about the public finances was supposed to lead to increased confidence and more spending. Instead, greater uncertainty about the economic outlook - and some bad luck with global commodity prices - has led to reduced confidence and less spending. Were it not for the export boom, the UK would now be back in recession."

Read Tony Dolphin's analysis on the Left Foot Forward blog

Contact

Richard Darlington: 07525 481 602 / r.darlington@ippr.org

Tim Finch: 07595 920 899 / t.finch@ippr.org