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The UK economy [March 2006]

Low, Kenneth (2006) The UK economy [March 2006]. Quarterly Economic Commentary, 30 (4). pp. 19-20. ISSN 0306-7866

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The world economy is still growing relatively strongly with a slight slowing in the US but as Japan has performed above expectations this has compensated for the US. Non-Japan Asia and China are also performing well. The Euro Area is showing signs that 2006 and 2007 will be better years as there are consistent signs of a pick-up in growth. The main risks to the world economy include imbalances in the world economy, high oil prices being sustained beyond the medium-term and significant second round effects on inflation