Targeted stimulus still needed to sustain growth

Giving a cautious welcome to news that the UK economy grew by 1% during the second quarter of this year, SNP Treasury Spokesman Stewart Hosie MP said:

“The fact that the UK has emerged from recession is obviously good news, but this has clearly been given a big boost by the Olympics and we are still a long way from economic recovery.

“The IMF has recently downgraded its predictions for UK growth for the next few years – precisely because of the continued lack of targeted fiscal stimulus - and indeed Christine Lagarde herself recently warned against countries front-loading spending cuts and tax increases.

“This is all happening at a time where Iceland, Ireland and Norway are all finding their growth predictions revised upwards.

“It is clearer than ever that we need the powers to make decisions over the future of our own economy in Scotland so that like our neighbours we can set an economic policy that meets Scotland’s needs and drives forward growth.”