Private wealth affected by "sluggish" growth?

The UK economy will expand slowly for the foreseeable future, according to one financial expert, an opinion which may interest those with private wealth.

Gross domestic product (GDP) will grow by about one per cent in 2011 and just half a percentage point more the following year, Capital Economics' Samuel Tombs revealed.

The analyst stated public expenditure cuts laid out by the coalition government will slow economic recovery for the next few years.

Further spending reductions may have to be implemented, Mr Tombs commented, as "there are big question marks" over how effective the recently announced plans will be in reducing the budget deficit.

"I think it will take several years - perhaps to the middle of the decade - for output to recover to its pre-recession level," he added.

In its latest forecast, the British Chambers of Commerce took a more optimistic view, predicting GDP growth of 1.8 and 2.1 per cent in 2011 and 2012 respectively.  ADNFCR-2318-ID-800281166-ADNFCR