Friday, Jul 25, 2008
The R Word
Telegraph: Britain's economy shrank in May and June
A number of economists changed their forecasts following today's statistics to reflect the likelihood that Britain suffers a technical recession - where GDP shrinks in two successive quarters. Capital Economics said: "An outright recession is now our central scenario. With industrial production having fallen in both the first and second quarters, industry is already in recession. "Interest rates will eventually need to fall... but this will be too late to prevent a recession".
Posted by pendulum @ 06:56 PM (551 views) Add Comment
7 Comments
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1. drewster said...
A "technical recession". Does that make it ok then? It's just a technicality, nothing to get worried about.....
2. hpwatcher said...
it's inevitable.
3. pendulum said...
What we've been saying really... "the UK data will confirm suspicions that Europe [& UK] may suffer as serious a blow, **if not more severe** ...than the United States.
4. Mytimeisnigh said...
What a mess. All I wanted was to work and save hard and then afford a nice house in the suburbs. I'll get that in the end, but first I've got to witness my country go to the dogs.
5. gardeniadotnet said...
"the UK data will confirm suspicions that Europe [& UK] may suffer as serious a blow, **if not more severe** ...than the United States.
Death of 1000 cuts v death of 1001 cuts. Not much difference really.
6. renting2 said...
I have this vague suspicion that the US will swiftly get on and do whatever they think is required, whereas we will procrastinate and prevaricate leading to a much more dire situation than would otherwise be the case.
7. gardeniadotnet said...
>the US will swiftly get on and do whatever they think is required.
All they are doing, all they CAN do, is put off inevitable economic collapse for a little while longer.