TPT March 2017

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G LOBA L MARKE T P L AC E
62 MARCH 2017
The Uni ted Kingdom
On the eve of a key speech on moving
forward on Brexit, the UK is identified by the
IMF as the fastest-growing G7 economy
The International Monetary Fund had predicted that the
economy of the United Kingdom would grow by 1.1 per cent in
2017. On 16 January, however, IMF economists revised that
assessment, predicting instead 1.5 per cent UK growth this
year. The 0.4 percentage point upgrade is the largest upward
revision the Washington-based international body made in its
latest report. The change was attributed mainly to “a stronger
than expected [British] performance during the latter part of
2016.”
Preliminary IMF findings for the full year 2016 indicate that
the UK economy grew by 2 per cent, making it the fastest-
expanding of the major advanced economies: ahead of
Germany at 1.7 per cent, the US at 1.6 per cent, Canada
and France at 1.3 per cent, and Italy and Japan – both at 0.9
per cent. The European Union bloc as a whole was expected
by the IMF to record growth of 1.6 per cent for 2016; global
growth, 3.1 per cent – consonant with earlier IMF projections.
In her eagerly awaited 17 January landmark speech on
Brexit, British Prime Minister Theresa May gave the clearest
indication to date of Britain’s plans for departure from the
European Union, which were set in motion by last June’s
referendum on the nation’s EU ties. Coming just a day before,
the revision upward of the IMF’s outlook for the UK in 2017
would have helped confirm Mrs May in her vision of Britain as
“a great global trading nation.”
Optimistic British CEOs are set to capitalise
on the attraction the UK holds for the rest of
the world
It seems that the upbeat frame of mind of mid-January was
not confined to the higher echelons of British government.
The publication of the latest PricewaterhouseCoopers (PwC)
annual poll of global executives found that British bosses
are more optimistic about their business prospects this year
than their counterparts in almost every other major advanced
economy. Only executives in Canada reported having a
sunnier outlook. Some 89 per cent of the 126 UK chief
executives surveyed by PwC said they were confident about
the business outlook for 2017. This is the highest result for
that cohort since 2013, and up from 85 per cent in 2016.
As noted by business reporter Szu Ping Chan of the Telegraph,
the British results compare with a global average of 85 per
cent and are higher than those in five advanced economies
including the US, Germany and Japan – where 88 per cent,
77 per cent and 66 per cent of chief executives, respectively,
expressed confidence about the ensuing year. (“British Bosses
Are More Upbeat About Business Prospects This Year Than
Almost Every Other Major Advanced Economy,” 16 January)
PwC’s survey of 1,379 global CEOs showed that the British
bosses remain “in hiring mode.” Sixty-three per cent said they
expected to take on more staff over the coming year while just
ten per cent expect their workforces to shrink, down from 20
per cent in 2016.
The Telegraph pointed out that, according to PwC, Britain
also punches above its weight in terms of its global business
standing. The London-based multinational professional
services firm said the UK was the fourth most important
country for world growth, behind the US, China and Germany.
› Wrote Ms Szu, “In a further sign that UK companies will
continue to drive economic growth through hiring and
investment, the global accountancy firm said 95 per cent of
CEOs were optimistic about business prospects over the next
three years.” This is unchanged from the PwC polling results
from 2016, and is also above the 2017 global average of 91
per cent. In still another encouraging note, PwC observed that
CEOs in the top three global growth engines – the US, China
and Germany – were among the most enthusiastic about
investing in the UK.
In a steel magnate’s vision, volume
manufacturing of bicycles returns to Britain
As well as large parts of Tata Steel and the Caparo niche
engineering business, Sanjeev Gupta, founder and chairman
of the London-based steel products group Liberty House, has
also acquired Birmingham-based Trillion Cycles and plans to
launch a new range of bicycles. The venture (for which the
headquarters staff of Tube & Pipe Technology publisher Intras
Ltd will have a ringside seat) has a double thrust: the restora-
tion of the bicycle manufacturing industry in Britain, considered
by Mr Gupta to be its rightful home; and, more broadly,
the re-energisation of British manufacturing. “We have an
engineering plant at Leamington Spa to make the bikes,”
Mr Gupta told industry editor Alan Tovey of the Telegraph.
“And we will increase [their] UK content as our manufacturing
businesses expand the capability to produce the parts.”
The industrialist described by the Telegraph as “a cheer-
leader for UK engineering” said he is encouraged by the
Government’s efforts to boost manufacturing and believes that
Brexit will strengthen the sector. The presentation of the first
G LOBA L MARKE T P L AC E