Monday, January 16, 2012

Forecasters: 'UK Is Already In Recession'

The UK is likely to have already fallen into recession as the eurozone crisis scuppers hopes of imminent recovery, two respected economic forecasters have warned.

The Ernst & Young ITEM Club and the Centre for Economics and Business Research (Cebr) both say gross domestic product (GDP) shrank in the final quarter of last year.

Both also predict it will fall again in the first three months of 2012.

That would represent a second consecutive quarter of contracting output - fulfilling the definition of a recession.

And export trade crucial to any improvement in the British economy is being hit by problems within the eurozone, according to both reports.

The warnings come shortly after France, the eurozone's second biggest economy, had its AAA credit rating downgraded by Standard & Poor's (S&P). Read More