Jim O’Neill sees positive signs in economy
TOP economist Jim O’Neill says he is detecting more positivity in the economy, and that businesses should stop “obsessing” over the euro zone.
The crisis afflicting Europe, he said was “the most unnecessary” he had seen in more than 30 years in finance because it could have been averted if the euro zone countries had “acted as one unit” rather than allowing political factors to dominate.
From a domestic situation, the respected Manchester-born Mr O’Neill said
there is a disconnect between official statistics and the real world.
“There is a growing suspicion that GDP data is not accurately portraying what is going on out there. I am more confident about the UK – there is more of a buzz around people, be it among cab drivers or in Manchester where there is talk of resourcing textiles here – which would be amazing if it happened.”
Speaking at the Festival of Business conference organised by the Daily Telegraph he reiterated his calls for increased focus on driving trade with the BRIC economies – Brazil, Russia, India and China- over the next decade.
“As the Chinese get wealthier and want to acquire different things, there are massive opportunities for us and you. If we are going to have a better economy, we need to reach out for export opportunities around the world.
“We have our first trade surplus in autos in 40 years – and it’s not just Toyotas and Honda using cheap labour by Jaguar, Bentley and Rolls Royce.”
He said he was encouraged by the appointment to the Department of Business of Michael Fallon – who he said “talks sense”.
Mr Fallon, who was also a speaker, said the Government was committed to creating the right environment for business growth by cutting red tape.
Despite this week’s positive employment figures – the ONS said record numbers of people are in work – he said there is no room for complacency.
“We are hungry for growth, and we are determined to remove the barriers.”
He said he wants to push the regulatory reform agenda in the European Commission too.
