Triple-dip recession threatens Britain

Economists have said in a survey that Britain risks facing its first triple-dip recession.

A new survey by economists has found that Britain’s economy may shrink in the
coming months, while the country risks facing its first triple-dip recession
since records began nearly six decades ago.

(PressTV) According to economists, Britain will see a 0.2 percent expansion in the first
quarter of 2013, the odds of the economy falling into another recession within
the following year increased to 33 percent from 28 percent.

The survey
comes after the Bank of England’s governor Mervyn King provided a gloomy
assessment of the UK economy earlier this week, saying that the outlook remains
“challenging” and the recovery will be “long and winding.”

King stated
that the UK’s biggest risk lies with the euro-area debt crisis. His comments
were made as the quarterly Inflation Report was published by the Bank of
England, which also highlighted that British Chancellor George Osborne’s budget
cuts were putting pressure on the economy.

Meanwhile, Osborne was warned
on Wednesday 14 November by the credit rating firm Moody’s that he would be
carefully monitored in the coming months as to how he manages the balancing act
between growth and deficit reduction.

Moody’s also warned that it may
cut Britain’s credit rating in 2013 if the country plunges into a triple-dip
recession.

BGH/MOL/HE