Britain’s Economy Hits Hard Times

Britain’s economy will shrink by 2.9% in 2009, the worst one-year fall in gross domestic product (GDP) since 1946, the Associated Foreign Press reported. Analysts at the Centre for Economics and Business Research (CEBR) also said if the financial crisis triggers a series of cutbacks, the economy could shrink by up to 10%, setting Britain back by five years.
The British government predicts the country’s GDP to fall by 0.75% to 1.25% next year, although several analysts put the figure at 2.5%. The economy shrank by 0.6 % in the three months to September compared with the previous quarter, the Office for National Statistics said. The country will officially be in recession if the economy contracts again in the fourth quarter. ♦