NEWS

UK economy 'to see solid growth'

According to the CBI, the UK economy will perform better in 2007 than had previously been forecast.
The employer’s body is predicting growth of 2.9% in 2007, ahead of its previous 2.7% forecast, with the economy being supported by strong consumer spending.

"The economy will enjoy better than expected growth this year as consumers continue to spend and businesses invest in their companies," said Ian McCafferty, the CBI's chief economic adviser. "Our economic forecast shows the economy is in good shape at the moment with above-average growth this year and a good outlook for the year after."
In his pre-Budget report in December, Chancellor Gordon Brown forecast growth this year of between 2.75% and 3.25%.

But the CBI added that it expected the economy to slow in 2008, with GDP growth easing to 2.6% amid tighter control over public spending.

The CBI believes consumer price inflation will gradually ease from its current level of 2.7%, dropping as low as 1.6% next year.

"Business prefers lower rates but also appreciates even more that they peak at a relatively low level, and perhaps stay there, rather than continue to rise for lack of initial action," Mr McCafferty added.

Source: BBC News

EU inflation stable at 2.1%

According to Eurostat, the Statistical Office of the European communities, annual EU inflation remained unchanged from January’s figure of 2.1%. The current rate of inflation is close to the European Central Banks desired level of 2%.

The current inflation rate for the euro zone is at 1.8%, which is in line with the ECB’s inflation target. The stability of the current inflation rate since the beginning of 2007 has come as a surprise; strong economic growth and an the increase of German VAT in January had caused many to predict an increase away from the desired level of inflation.

Source: Eurostat

Germany’s property market to surge

The property market in Germany has often been overlooked, and has lost out to more traditionally popular overseas investment destinations such as France and Spain. However, according to many analysts, the German property market is set for significant growth.

The majority of the prior interest in the German market has been through private equity funds, but this is now changing, as more investors take an interest in what the German property market has to offer their personal property portfolios.

The outlook for the German market is very attractive, with strong rental yields further tempting investors into this overlooked market. As the opportunities for investment increase, and developments in the mortgage market, Germany may prove to be the most successful European market for some time.

Cyprus rated as best place in the world to invest'

According to A Place in the Sun Magazine , Cyprus has been rated as the best place anywhere in the world to invest in property.

When considering twelve different factors used to assess the viability of a country, Cyprus came out on top. This was due to its high level of Foreign Direct Investment (FDI), as well as its strong Gross Domestic Product (GDP), as well as its political and economic stability. Other factors that make Cyprus and ideal investment included the number of new developments that are currently available, as well as the PGA golf course and two the state of the art marinas that are all in development. The fact that Cyprus is on target to adopt the Euro in 2008 is also enticing investors to the Island .

A Place in the Sun Magazine also cited the number of internet hits' and media attention that Cyprus receives as other reasons why Cyprus remains a hotspot for investors.

Source: A Place in the Sun Magazine

Africa and Europe set for tunnel link

Plans to link Europe to Africa via a tunnel are gathering pace.

The Moroccan government has been holding talks with its Spanish counterparts to start the project, which would consist of a railway beneath the Strait of Gibraltar carrying freight, passengers and cars.
Work is expected to start in 2008.

The man entrusted with designing the tunnel is the veteran Swiss engineer Giovanni Lombardi.
It is hoped that funding can be raised via two publicly owned companies in Spain and Morocco, as well as financial support from the European Union.

If the money is forthcoming, the very first fixed link between Europe and Africa could become one of the modern wonders of the world.

Source: BBC News