Private sector investment 'needed to drive economy'

Those with high levels of personal wealth are likely to be contributing to the recovery of the British economy.

This is according to chief economist at the Institute for Public Policy Research Tony Dolphin, who explained investment in the private sector will be key to future expansion.

’Growth will have to be led by exports and private sector investment,’ he remarked, noting that the large fiscal gap and the likelihood consumer spending will not rise as rapidly as it has in the past means government spending ’will have to be constrained’.

However, he warned against letting the situation ’get out of proportion’, explaining it is a shift in the growth balance of the economy that is required, rather than a restructuring of the whole system.

He was commenting after a report from accountancy network BDO warned a significant jump in private sector investment is needed if enlargement of the UK’s economy is to be sustained over the medium and long term.ADNFCR-2318-ID-19720425-ADNFCR