Economic outlook - Grim news, but no need to panic

TWO sets of figures released yesterday are so unusually downbeat that they might cause a moment’s pause even among the bravest of punters at Cheltenham for today’s unique, nine-race Gold Cup day.

In its quarterly economic commentary the Economic and Social Research Institute predicts GNP will grow by a mere 1.6%, the slowest growth since 1988. The figure is also much lower than those already suggested by prominent analysts.

If that prediction doesn’t unduly upset the Prestbury Park high rollers then Central Statistics Office figures, which show month-on-month inflation up from 4.3% to 4.8%, may remind them the reality is just around the corner and that they should enjoy the racing while they can. If they remain undaunted they might consider soaring oil prices — $111 at one point yesterday — and the collapsing dollar.