THE BRITISH economy will remain in recession three months longer than previously expected but the country’s hosting of the Olympic Games should vault it back to growth in the current quarter, according to an opinion poll.
The overall picture though is of a flat-lining economy that slipped back into recession at the turn of the year. The poll, conducted by Reuters among more than 60 economists over the past week, did not see it growing again until the current quarter.
However, tourism and ticket sale revenue from the Games will boost growth to 0.6 per cent in the three months to September, in line with June’s forecast.
London is just a week away from the opening ceremony of the Olympics, 64 years since the city last hosted the Games. The British government has touted it as an opportunity to showcase business and tourism.
Prime minister David Cameron has also suggested it would generate £13 billion (€16.5 billion) over four years, for a cost of roughly £9 billion (€11.5 billion).