‘Dismal’ GDP Growth forecast for UK this 2012
British Economy growth this year was forecast at a dreary rate as it shows only 0.4%, says The Ernst & Young Item Club. The said growth rate was half the 0.8% estimated by the Office for Budget Responsibility.
UK has dodged a worse recession but will struggle for the rest of 2012 unless businesses start investing instead of hoarding their money, forecaster says.
Banks have been doing emergency measures to stabilise financial markets and pull the UK back from the brink of recession. This includes Bank of England, European Central Bank and US Federal Reserve.
The economy have plunged by 0.3% in the last 3 months of 2011 and is expected to avoid a technical recession by eking out around 0.1% to 0.2% in the first quarter of this year.
“UK will not prosper again until businesses invest stockpiled cash.” chief economic adviser to the Ernst & Young Item Club, Peter Spencer says.
“The UK has so far avoided the dreaded double dip, but a lot still hangs in the balance. After three business-friendly budgets and more tax cuts in the pipeline, it is now up to corporates to play their part in the UK’s recovery,” Spencer said.
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