Accounting software helps firms cope with gloomy economic predictions

News Article - 28 May 2008
Category: Environment

Businesses can adopt accounts software in order to help them weather the effects of the recent global credit crunch.

Analysts are predicting a gloomy period in store for Britain's economy and businesses are examining their operations to identify potential savings and efficiencies.

In its latest statement on the UK's economy, the International Monetary Fund (IMF) noted that "recent global shocks to financial markets and energy and commodity prices" have pushed up inflation rates in recent months.

The Washington-based IMF has raised its forecast for economic growth in Britain to 1.75 per cent during 2008 and 2009, up from a previous prediction of just 1.6 per cent growth.

According to the international monetary organisation, the Bank of England should now refrain from any further reductions in interest rates in the short term in order to gain control of rising inflation and should raise the base rate if wages are pushed up by more rapid inflation.

"For over a decade, the United Kingdom has sustained low inflation and rapid economic growth - an exceptional achievement," the report, released by the UK Treasury, states. "More recently, the economy grew by three percent in 2007, and inflation returned to target after a temporary elevation. All this is the fruit of strong policies and policy frameworks, which provide a strong foundation to weather global shocks."

The British economy witnessed sluggish growth during the first quarter of 2008, with business investment falling by 1.6 per cent, down from a 1.8 per cent rise in the fourth quarter of last year, according to data from the Office for National Statistics.

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