Top

Forecast: UK may slip into recession within 18 months

Weak pound pushes up the price of imports, government would be forced to borrow an extra sum

Baku. 3 August. REPORT.AZ/ The United Kingdom (UK) ‘has 50% chance of slipping into recession within 18 months. 

Report informs, the UK's National Institute of Economic and Social Research (NIESR) said.

"Inflation would increase to more than 3% for the first time in five years in late 2017 as the weak pound pushes up the price of imports and the government would be forced to borrow an extra £47bn in the next four years. According to the thinktank, economic growth would slow to 0.2% in the current quarter from 0.6% in the previous three months and stagnate for the rest of the year. We expect the UK to experience a marked economic slowdown in the second half of this year and throughout 2017", NIESR said on Wednesday.

Rain Newton-Smith, Director for Economics of the Confederation of British Industry(CBI), said: "The UK's SME manufacturers reported higher production, more staff hired and now expect to sell more of their world-class goods overseas over the next quarter, with a weaker sterling having a hand in this. But overall they do feel less optimistic and are scaling back some investment plans in machinery and plants.

If you find out orphographic mistake in the text, please select mistaken part of the text and press Ctrl + Enter.

Last added

All news


Orphus sistemi