The British economy may face a 'bumpier ride' this year than last, according to Bank of England deputy governor Mervyn King.
King told the Financial Times that Britain's recent performance was 'remarkably good' compared with the rest of the Group of Seven major industrialised nations.
But imbalances in the British economy and the uncertainties of the global environment meant that the Bank of England's success in shielding Britain from the worst effects of the global downturn might not be repeated in the coming year.
'Because consumer demand has been so strong and for so long, there is a risk that at some point it will fall away very sharply,' he told the FT.
King said the Bank's central forecast was that there would be slower growth in the first half of 2002 and then a stronger pick-up in the second half, remaining positive throughout.
The Bank of England expected consumer spending to slow gently, King said.
But he added: 'If it were to slow very sharply - perhaps in the wake of households revising their beliefs about income growth or the sustainability of their debt positions - then that would mean quite a sharp downside risk.'
