We highlighted some of the risks to the recovery in the January edition of Economic Prospects: government cuts; rising commodity prices; accessto finance; and the eurozone crisis. These have all proved relevant in the first half of the year.
For the remainder of the year we expect to see continued modest growth across the economy as a whole relying mainly on investment and externaldemand as consumer spending remains subdued. In this mid-year review of economic prospects we will consider some of the domestic indicators we will bewatching that would suggest that the recovery is beginning to drift from our central forecast and the international challenges that policy makers will needto navigate through the second half of this year.