The UK Economy will shrink more than 1 percent in Q4

The UK Economy will decline at lightening speeds in the fourth quarter according to the National Institute of Economic and Social Research NIESR).

The reports show that the UK recession will be a deep one by the end of the fourth quarter and in the three months to November gross domestic product fell by 1 percent and after it dropped 0.8 percent in three months to October. It’s widely expected that the fourth quarter decline will be much larger than 1 percent.

The outlook for 2009 does not look any better, the NIESR said the Government faces the risk that output will fall more sharply than expected to the end of the year due to the reduction in bank credit, its also said that further interest rate cuts are unlikely to do much to improve the economy.

Source: Telegraph

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