UK 'likely to be' back in recession

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UK 'likely to be' back in recession

Tue 17th Jan 2012

Data from the Institute for Public Policy Research (ippr) has shown the UK is likely to have fallen back into a technical recession in the first quarter of 2012.

Tony Dolphin, senior economist at the ippr and associate director for economic policy, said new figures are pointing towards the country being in a state of economic decline once more, adding that although the last quarter and the current one will only show slight falls, it is a downturn nonetheless.

He commented: "It would not be the sort of deep recession we had in 2008, but still back in technical recession in which output contracted for two quarters."

Mr Dolphin added however that business and consumer confidence remains a position where long-term growth is still likely.

According to ITEM Club Winter 2011-12 UK forecast, the UK is now probably in a technical recession and the economy is likely to remain stalled until the second half of the year, when falling inflation should provide a platform for a consumer recovery.

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