Thursday, September 4, 2008
Cheer up #1
No one needed the OECD or our depressed Chancellor to tell us which way the wind blew for the British economy. The pound had pipped them to the post, falling by 10pc in a month against the dollar. If we are not already in recession, then it's clear we soon will be. The supporting evidence for the most serious economic retreat since 1991 is mounting. Tumbling house prices are taking their toll, with mortgage approvals at their lowest for 15 years. Unemployment could top 2 million. The OECD says that Britain, uniquely among the leading industrialised nations, will fall into recession in the second half of this year. The doom-mongers at Capital Economics now expect an entire year's downturn in 2009.