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British Chambers of Commerce lowers UK growth forecast

worldtraveller
worldtraveller Posts: 14,013 Forumite
Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
The UK will avoid a double-dip recession but growth this year will be slower than previously forecast, the British Chambers of Commerce has said.

In its quarterly economic forecast, the business lobby group (BCC) predicted the UK economy would grow by 0.6%, down from its previous forecast of 0.8%.

It warned that unemployment would rise and that debt levels remained too high.

BBC News

Double-dip, or no double-dip, when all these economic organisations stop reducing their UK growth forecasts every month/quarter one can maybe feel slightly better. The growth forecast of 0.6% for 2012 is extremely likely to be reduced further, IMHO, and recession, or no recession, it's still pretty pathetic. We have a long, long way to go, with major changes required in the UK economy to stand any chance of real organic growth soon.
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Comments

  • kabayiri
    kabayiri Posts: 22,740 Forumite
    Part of the Furniture 10,000 Posts
    The UK will avoid a double-dip recession but growth this year will be slower than previously forecast, the British Chambers of Commerce has said.

    In its quarterly economic forecast, the business lobby group (BCC) predicted the UK economy would grow by 0.6%, down from its previous forecast of 0.8%.

    It warned that unemployment would rise and that debt levels remained too high.

    BBC News

    Double-dip, or no double-dip, when all these economic organisations stop reducing their UK growth forecasts every month/quarter one can maybe feel slightly better. The growth forecast of 0.6% for 2012 is extremely likely to be reduced further, IMHO, and recession, or no recession, it's still pretty pathetic. We have a long, long way to go, with major changes required in the UK economy to stand any chance of real organic growth soon.

    When I heard this on the radio earlier I started to wonder how close a parallel we can draw between UK of today and the US of the late 20s/30s.

    There was the gap between the US stock market crash of '29 and the depression hitting home in '32 / '33. Then a long period of hard times throughout the 30s.

    Could we see a similar pattern here?
  • Radiantsoul
    Radiantsoul Posts: 2,096 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    kabayiri wrote: »
    When I heard this on the radio earlier I started to wonder how close a parallel we can draw between UK of today and the US of the late 20s/30s.

    There was the gap between the US stock market crash of '29 and the depression hitting home in '32 / '33. Then a long period of hard times throughout the 30s.

    Could we see a similar pattern here?

    The recession here is far milder than in the Great Depression in the USA. Also the USA had a four year boom between 1933-1937 before crashing again.
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