The World Bank has raised its global growth forecasts for 2014. In a report released yesterday, the institution claimed the world economy had “reached a turning point”, and that developed economies would now be able to generate “self-sustaining growth”. The bank forecasts that global GDP will grow by 3.2% this year, up from 2.4% in 2013, with much of the pick-up coming from developed economies. (The Daily Express, BBC)
Research from the housing charity shelter has shown that 19% of householders borrowed money on credit cards to meet the cost of rent or mortgages, while 2% had taken out payday loans to meet housing costs. Campbell Robb, chief executive of Shelter, said: “Sky-high housing costs, stagnating wages and the high cost of living have taken their toll.” However, Chris Hopkins, Housing Minister, questioned the claims – saying “Shelter’s figures are based on a small number of calls to their helpline, while LSL’s figures show that the numbers of people in severe rent arrears are significantly lower than this time last year, and are 1.6% of the 3.8 million households who rent in the private sector.” (ITV, BBC, Mail, Guardian, Sky)
The Royal Institution of Chartered Surveyors (RICS) has said that house price gains “can’t go on”, after revealing that sales have hit the highest level in six years, but that new supply has not caught up. RICS says more homes need to come on to the market soon to meet rapacious demand, or price rises will start to spiral out of control. (Daily Mirror, Graham Hiscott) However, writing in today’s Times, the commentator Peter Franklin argues that more building won’t be enough to keep house prices under control – saying the government should act to control speculation by those who own many different homes.
Mark Carney has dealt a blow to Ed Miliband’s mooted plan to limit bank bonuses. The governor of the Bank of England was careful not to be overtly political, but criticised the Labour policy, arguing the idea of a “crude” bonus cap was to blunt an instrument to use in the regulation of financial markets.
Other news in the world of work this morning is that the most fulfilled worker is aged 40 and earns £31,000 a year – and is a woman. Research from recruiter Randstad also found that the most fulfilled industries were construction and teaching, while those in the public sector feel their careers are the least fulfilling.