Business advisers report that the UK economy is set for a great year, as expectations for 2006 are optimistic. The economy is on the rise, and we are anticipating an increased level of investment and economic growth.
A study by BDO Stoy Hayward reports that economic growth is expected to reach 2.2% in the second quarter of the year, and 3.4 by the third quarter. Barring external factors, such as slowdown of world demand for goods, UK interest rates should remain stable or unchanged, leading to a robust investment climate.
Apart from stable lending rates, an increase in consumer demand is also expected to provide an incentive for businesses to step up production and go into new investments. Companies are also expected to start hiring more people, given the need to increase output.
Company formation experts agree with this optimistic outlook, and believe that there is no better time to start up with business than now. While there are risks of the economy’s being adversely affected by external shocks, such as increases in energy costs and a drop in world demand for goods, these are likely to be well-anticipated and compensated for by the positive benefits of the expected growth in consumer demand and spending, and investment.