OECD forecasts double-dip recession
Peter Cripps
Monday 28 November 2011
The UK's economy will slip back into recession in the coming months, a bleak forecast from the OECD revealed today.
The economic think-tank said the UK's GDP will shrink in the final quarter of 2010 and the first quarter of 2011 - the first time it has predicted a double-dip recession for the UK.
It believes the UK's faltering economy will grow by just 0.5% in 2012, down from its previous estimate of 1.8% in May, as it is hit by weak demand for exports, the Government's austerity measures and the squeeze in consumer spending.
The OECD also said unemployment, which currently stands at 8.3% - its highest since 1996 - will rise to 9% in 2013 as jobs figures take a worse hit than in the recession following the banking crisis.
It said more economy-boosting quantitative easing measures from the Bank of England are "warranted", adding that it expects the stock of asset purchases to rise to £400 billion early next year from £275 billion currently.
The OECD's forecast comes ahead of Chancellor George Osborne's Autumn Statement tomorrow in which he is set to announce a series of measures including credit easing to boost prospects.
OECD forecasts double-dip recession - Home News - UK - The Independent
OECD forecasts double-dip recession
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