UK GDP will top at 2%

By Ruth Alexander The UK economy will achieve GDP growth of no more than 2% this year and in 2002 but will fare better than the US due to the flexibility of its interest rates, according to Peter Spencer, the Ernst & Young Item Club's economic adviser. Spencer disputes Gordon Brown's estimation that the economy will see GDP growth of between 2.25% and 2.75% this year. He said the economy is slowing and that little beyond 2% can be expected. According to Spencer, the club's research has shown the necessity for interest rate cuts to 5% before year-end to combat recessionary tendencie...