UK economic forecast downgraded again
The global crisis has resulted in the Bank of England revising their economic forecast for Britain’s recovery. The recovery will dip to about 1.4 per cent, from 1.8 per cent, because the economy faces ‘persistent headwinds’ from the slowdown affecting Europe and the U.S.
It is thought that the recent freefall of the financial markets could further damage the UK economy, by shaking consumer confidence.
There are already warnings that the euro zone crisis could impede on exports in the UK. Economists also predict that the rate of inflation will climb higher than the 5% originally forecasted, but will decrease again next year.