Today’s headlines

Economics

The UK economy is now thought to be recovering at twice the rate that was previously expected. According to the National Institute of Economic and Social Research (Niesr) GDP will grow by 1.2% this year; this is double the Office for Budget Responsibility’s estimate for 0.6% growth. The group expects the UK’s recovery to pick up even more speed next year, predicting that the economy will expand by as much as 1.8% in 2014. (Cover of City A.M.)

Shares in Lloyds Banking Group raced above the price the government paid for its £21bn stake yesterday, fuelling hopes that taxpayers will profit from the bank’s rescue in 2008 at the height of the financial crisis. The boss of Lloyds challenged the government to start selling off the taxpayers stake and outlined plans to resume dividends for the first time in five years. (Cover of the Financial Times, p.28 of The Guardian, p.2 of The Times, p.53 of The Independent, Cover of the Daily Telegraph Business section, p.10 of the Daily Mirror, and p.2 of the Daily Express)

Personal Finance

More than half of British adults are struggling to keep up with their bills and debts, a report reveals today. According to MoneySavingExpert.com, about 26 million are facing money troubles – nine million more than in 2006 – and 18 million routinely run out of cash before payday arrives.  The report also brought to light the disturbing fact that the amount we earn has dropped by 6% in real terms since 2006. (Cover of the Metro)

Property

Despite a series of increases in house prices occurring already this year, experts have said that homes are still heavily under-valued. They have dismissed warnings that the market is heading for a house price bubble and in fact said that the average house price could grow by as much as 13% if the property boom continues. This could add nearly £33,000 to the asking price for a typical home. On the other hand, some analysts fear we are heading back to the days of boom and bust. (Cover and p.4 of the Daily Express)

Recruitment

Recruitment firm Robert Walters have said that there is reason for the recruitment sector to be upbeat. They have said that workers are getting “bored of the recession” – of not moving jobs, staying in a job they don’t like, being worried about being last in, first out… This will obviously have a domino effect where companies have to replace leaving staff. Robert Walters have reported that they are already seeing this happening. (p.5 of City A.M.)

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