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BCC: UK could face another recession
[Iran Press TV Latest] The British Chambers of Commerce has warned that the crisis-hit eurozone could drag the United Kingdom into another recession. The British Chambers of Commerce (BCC) said in its quarterly forecast on Sunday that the country's fragile economy is facing growing pressure from the crisis in the eurozone. The BCC said in the report that unemployment will continue on its upward trend in the next 12 months. It added that the growth forecast for this year will increase from one to 1.3 percent but it has decreased its perdition for 2011 from 2.1 to 2 percent. David Kern, the BCC's chief economist, said "markets have rallied a bit but things do not look good." "The euro will not disintegrate next month or maybe even next year, but the long-term prospects are not good. I think there is a good chance Greece could default", he added. The business group called on the government to devise a credible plan to cut deficit and enforce a freeze in the total public sector wage bill. The BCC, however, warned that if the government was to further tighten the fiscal climate beyond the GBP 6 billion already announced by the Chancellor, George Osborne, it should be implemented "only when the recovery is definitely more secure." "If they implement more than £6bn this year we risk the recession coming back," Kern said. Posted by: Fred 2010-05-31 |
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