UK recession may be deeper than expected
13 Dec 2011
The UK economy is headed for greater contraction than previously thought, according to a leading forecaster.
According to economists at Standard Chartered bank, the UK economy would contract by 1.3 per cent in 2012, as against a previous growth projection of 0.6 per cent for next year.
The eurozone economy would prove to be an even worse performer, according to the bank's forecast, contracting by 1.5 per cent.
Meanwhile, the Organisation for Economic Co-operation and Development (OECD) economic think tank has predicted that all major global economies would slow down in 2012.
The OECD's December analysis of leading economic indicators pointed to growth levels in the UK and the eurozone falling below their long-term average.
However, Standard Chartered's contraction forecast in the economy during 2012 is worse than the predictions' of most economists.
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