The global economy will be buoyant this year and may exceed 2005's strong growth rate, forecast the leaders of the 10 main central banks. Meeting in Switzerland, the G10 group of central bankers said last year's surge in oil prices hadfailed to restrain worldwide economic growth. European Central Bank boss Jean-Claude Trichet said: "The global economy proved very, veryresilient."

He added that there was agreement that global growth was "dynamic".

"World trade will continue to develop at a significant pace and perhaps also even accelerateslightly in 2006," he said.

"Of course, I am making the welcome assumption that oil price will stabilise at the current level,but there, there is a risk."

Inflation and interest rates in G10 member states are expected to remain low, but that they stillhad to remain vigilant against inflation.

Mr Trichet refused to comment on predictions made by billionaire investor George Soros that the USwould fall into recession in 2007.

Earlier Mr Soros warned that the Federal Reserve might overshoot in its bid to tighten monetarypolicy, which, he claimed, would deflate house prices and tip the economy into recession next year.
Meanwhile, UK retail sales recorded their strongest year-on-year rise for nineteen months in December, according to the British Retail Consortium.

Like-for-like sales were up 2.6 percent compared with a year ago, the biggest rise since May 2004.

Total sales, which include new floorspace, rose by an annual 6.2 percent, also the strongest in nineteen months.

On a rolling quarterly basis, like-for-like sales were up 0.2 percent in the three months to December after a 0.1 percent fall in the three months to November.

Home | Back to News

Bridging Loan ~ For all your Bridging requirements, commercial, residential and property developer bridging. Lagoon Bridging Loans Latest News, Latest News