Think tank predicts UK recession
The UK economy is likely to shrink in the last two quarters of 2008, according to the Organisation for Economic Cooperation and Development (OECD).
The think tank, based in Paris, predicts that in the third quarter the UK economy will shrink by 0.3%, rising to 0.4% in the final quarter.
According to official figures, the UK economy did not grow in the second quarter of 2008, ending 15 years of consecutive growth.
The poorly performing UK economy was dealt a further blow when Chancellor Alistair Darling was quoted in the Guardian that the UK’s economic promblems would be, “more profound and long-lasting,” than people expected.
These conditions have resulted in the pound being pushed to its lowest level against the Euro for over two years.
A recession is defined as any two quarters of negative growth.
