UK economy at dangerous juncture warns E&Y's ITEM Club
17 Oct 2011
The UK economy has bogged down at a dangerous junction, an independent forecast by consulting and research firm Ernst and Young's ITEM Club says.
The ITEM Club is the only non-governmental economic forecasting group to use theUK government's model of measuring the UK economy.
According to E&Y ITEM Club, the economy needed new growth measures to get back on track.
It said business confidence was being undermined due to uncertainty across the eurozone and a slowing world economy.
According to the forecast, the Bank of England's new quantitative easing (QE) bout was not likely to prompt recovery.
The ITEM Club has downgraded forecast for gross domestic product (GDP) to 0.9 per cent this year, which was well below its1.4 per cent prediction of three months ago.It projects a perked up growth of 1.5 per cent in 2012, although that would also be well under the 2.2 per cent it previously predicted.
