Britain's economy is a real risk of returning to recession during 2012. The only good news for consumers is an expected fall in inflation, which will ease the squeeze on spending power in households which remain in work. With no solution found yet for the euro zone crisis and many European economies already back in recession, the risk is that a mood of austerity will stunt the UK's growth too, the institute's chief economist Tony Dolphin says in a New Year message.
In the case of a double-dip recession, a return to growth will be possible only with a boost in public spending, a substantial increase in demand for British goods and services from overseas, or if UK consumers and businesses are given a reason to spend more, he adds.
No comments:
Post a Comment