Recession 'is even worse than feared': Chancellor predicts steepest slump ever
source: http://www.dailymail.co.uk/news/article-1231282/Recession-worse-feared-Chancellor-predicts-s...
-
-
- Ihatethemall
- added this
The recession is proving even deeper than feared, Alistair Darling will admit in next month's Pre-Budget report.
The Chancellor will forecast the steepest annual slump since modern records began.
But he is likely to put a brave face on the outlook by declaring that Britain has finally returned to growth in the fourth quarter of the year.
Last night Treasury sources indicated that Mr Darling will sharply downgrade his economic predictions in the December 9 statement, forecasting a slump of 4.75 per cent for 2009.
That would rival the worst year of the Great Depression of the 1930s, highlighting the terrible toll the banking crisis has taken.
In the Budget the Chancellor forecast a 3.5 per cent contraction for this year.
The difference will wreak havoc with the public finances, which already show a Government hugely in debt and borrowing at record levels.
The return to growth should allow the economy to record further modest growth of about 1.25 per cent in 2010, broadly in line with the Treasury's March forecasts.
But it is still well behind rivals such as Germany, France and Japan, which have already emerged from recession.
Yesterday Mr Darling gave a strong hint about the economic outlook, pointing out that independent analysts are predicting a 4.7 per cent fall in British gross domestic product this year.
The Chancellor will forecast the steepest annual slump since modern records began.
But he is likely to put a brave face on the outlook by declaring that Britain has finally returned to growth in the fourth quarter of the year.
Last night Treasury sources indicated that Mr Darling will sharply downgrade his economic predictions in the December 9 statement, forecasting a slump of 4.75 per cent for 2009.
That would rival the worst year of the Great Depression of the 1930s, highlighting the terrible toll the banking crisis has taken.
In the Budget the Chancellor forecast a 3.5 per cent contraction for this year.
The difference will wreak havoc with the public finances, which already show a Government hugely in debt and borrowing at record levels.
The return to growth should allow the economy to record further modest growth of about 1.25 per cent in 2010, broadly in line with the Treasury's March forecasts.
But it is still well behind rivals such as Germany, France and Japan, which have already emerged from recession.
Yesterday Mr Darling gave a strong hint about the economic outlook, pointing out that independent analysts are predicting a 4.7 per cent fall in British gross domestic product this year.
-
- groups:
- Community, Current Tonight, Economy, I HATE THEM ALL, 1 more
