Friday, July 25, 2008
The R Word
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".