The UK economy is making a steady recovery, albeit slowly, HSBC’s chief economist Dennis Turner told meeting planners.
Speaking at Grass Roots' Meetings Industry Forum 2011 at Marriott Grosvenor Square Hotel in London, he said Britain has a better economy than some might believe.
Despite a dip in the first three months of 2011, the economy is back on track following the 2008-10 recession.
One of the key factors in the UK's financial health is its triple A credit rating – the highest possible – which means the country can continue to manage its debt at low interest rates.
He was also supportive of the current government’s bid to reduce the level of Britain’s sovereign debt.
Turner suggested the scaling back of public spending was a positive move, as a country should only have a public sector that the private sector can afford to pay for.
He also suggested that UK consumers would not see a rise in the Bank of England’s interest rates, and subsequently the rate of inflation, in the short-term.
The economy is being tilted away from consumption – as high consumer spending and borrowing is what provoked the recession – towards imports and exports, he explained, which benefit from low inflation and interest rates.