How to get from Plan A to Plan A+

Terrible events in Norway and the ongoing phone hacking scandal have kept the economy out of the media in the last couple of weeks. Coverage of the latest bail-out of Greece last week was comparatively muted, especially considering how important it is for the eurozone and, by implication, the UK. However, if the soothsayers are correct, it is unlikely that the release of the Q2 GDP figures tomorrow will fail to hit the headlines.

When the Office for Budget Responsibility published their forecast for the UK economy in April they had forecast growth of 1.7 per cent this year, but signs are that tomorrow’s Q2 data will raise stark questions about the likelihood of that level of growth. Indeed, many commentators have revised their UK GDP forecasts down in recent weeks. Citigroup revised their 2011 forecast down to just 1 per cent last week.

With such gloomy prospects for the UK economy, expect calls from many commentators for more action to boost growth and ease the squeeze on living standards.