The UK has narrowly avoided a double-dip recession but will struggle for the rest of the year unless businesses stop hoarding cash and start investing, a forecaster warned today.
Emergency measures from the Bank of England, European Central Bank and US Federal Reserve have boosted confidence and stabilised financial markets, pulling the UK back from the brink of recession, the Ernst & Young ITEM Club said.
The ITEM Club has forecast that UK GDP growth will be a “dismal” 0.4% this year, which is half the 0.8% estimated by the tax and spending watchdog, the Office for Budget Responsibility, before rising to 1.5% in 2013 and 2.6% in 2014.
The UK economy shrank by 0.3% in the final three months of last year and is broadly expected to have just avoided a technical recession by eking out around 0.1% to 0.2% in the first quarter of 2012…
- UK | Ageism is back (jobmarketmonitor.com)
- ‘Dismal’ growth forecast for UK economy (m.guardian.co.uk)
- Great Recession vs Great Depression : Not as deep but recovery much slower (jobmarketmonitor.com)