Fictitious recovery - more evidence

The UK's economy will not grow as quickly as previously thought this year and may not fully recover for another three years, the Bank of England has said.

GDP is set to grow by around 1.4% in 2011, the Bank said in its quarterly inflation report, down from its estimate of around 1.8% in May.

Growth will remain sluggish in the near term, reflecting the continued squeeze on household incomes, but the Bank said it is likely to be above normal levels by 2014.... "The outlook for growth in the world economy has deteriorated and, largely as a consequence, near-term growth prospects at home are somewhat weaker," Sir Mervyn added.

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