Bleak outlook for UK economy

Britain’s economy is shrinking faster than any other in the developed world. A stark assessment by the...

EWN default image new logo

<?xml:namespace prefix="st1" ns="urn:schemas-microsoft-com:office:smarttags"?><country-region w:st="on"><place w:st="on">Britain</country-region>’s economy is shrinking faster than any other in the developed world.

A stark assessment by the International Monetary Fund has predicted that the <country-region w:st="on">United Kingdom</country-region> would be hardest hit by the global recession in comparison to that of the <country-region w:st="on">United States</country-region>, <country-region w:st="on">Germany</country-region> and <country-region w:st="on"><place w:st="on">Japan</country-region>.

Its outlook report revealed that <country-region w:st="on">Britain</country-region>’s growth would fall by 2.8% next year, a figure that was double the estimate made by the <country-region w:st="on"><place w:st="on">UK</country-region> government.

The International Monetary Fund’s Chief Economist Olivier Blanchard said, “We expect the global economy to come to a virtual stand still in 2009. There are important differences across countries. In the advanced economies we basically forecast the sharpest contraction in the post war period.” <?xml:namespace prefix="o" ns="urn:schemas-microsoft-com:office:office"?>