UK recovery will lag Germany and France - S&P

The UK's economic recovery is likely to be slower than that of Germany and France, according to the latest forecasts from Standard & Poor's.

The ratings agency is estimating GDP growth of 1.2% for the UK in 2010, compared to 1.6% in Germany and 1.4% in France. However, it says the UK will outperform the larger southern European states such as Spain and Italy. Chief European economist Jean-Michel Six says the euro's recent slippage against the dollar could pad eurozone GDP growth by one percentage point over a full year. He categorises European recovery as running at two speeds, with northern European countries pulling away from the so-called PIGS. "We foresee a wider than previously anticipated gap between Europe's sout...