UK economy on long path to recovery

12 Nov 2009

The Bank of England governor Mervyn King has outlined the outlook for the economy.

Students taking business and management courses through distance learning can look forward to the economy recovering at a rate faster than anticipated, which could have an impact on job prospects.

The Bank of England has published its outlook for the UK''s economy, revealing a fragile state that will continue looming over the country until at least 2011.

Speaking while launching the Bank''s latest quarterly Inflation Report, governor Mervyn King said that the economy has "only just started on the road to recovery", with inflation likely to increase in coming months.

The bank warned that the upcoming return of VAT to its pre-recession level of 17.5 per cent will cause inflation to rise towards three per cent next year before a minimal reduction is registered.

However, Mr King said that the bank''s continuing quantitative easing exercise, which involves pumping billions of pounds into the economy, will aid the country''s improvement.

While the economy recovers, those interested in boosting their skills can sing up for distance learning programmes such as trade and construction courses.