UK to suffer 'severe' recession
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The Organisation for Economic Co-operation and Development (OECD) has warned of a "severe" economic downturn in the UK in 2009.
The Paris-based body has predicted that economic output in the UK will fall by 1.1% next year, more than any other major G7 country.
The US economy is forecast to decline by 0.9% in 2009, and Germany by 0.8%.
Economic growth in the 30 countries of the OECD is forecast to fall by 0.4%, before growing by 1.5% in 2010.
As well as the UK, the OECD identifies Hungary, Iceland, Ireland, Spain and Turkey as being the countries most affected by the economic slowdown.
"These economies are most directly affected by the financial crisis, which in some cases exposed other vulnerabilities, or by severe housing downturns," it says.
In the pre-Budget report, the chancellor accepted that the UK economy would decline by 0.75% to 1.25% next year, but said that the UK was "better placed" than other countries to cope with the downturn.
The OECD warns that any recovery in the US is likely to be "languid" as consumption is held back by the large losses in household wealth.
And it says that the risks are still on the downside, suggesting that economic conditions could worsen significantly.
The Paris-based body has predicted that economic output in the UK will fall by 1.1% next year, more than any other major G7 country.
The US economy is forecast to decline by 0.9% in 2009, and Germany by 0.8%.
Economic growth in the 30 countries of the OECD is forecast to fall by 0.4%, before growing by 1.5% in 2010.
As well as the UK, the OECD identifies Hungary, Iceland, Ireland, Spain and Turkey as being the countries most affected by the economic slowdown.
"These economies are most directly affected by the financial crisis, which in some cases exposed other vulnerabilities, or by severe housing downturns," it says.
In the pre-Budget report, the chancellor accepted that the UK economy would decline by 0.75% to 1.25% next year, but said that the UK was "better placed" than other countries to cope with the downturn.
The OECD warns that any recovery in the US is likely to be "languid" as consumption is held back by the large losses in household wealth.
And it says that the risks are still on the downside, suggesting that economic conditions could worsen significantly.
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