Britain to fall behind the US, Japan, Germany, France and Italy

According to Oxford Economics forecasting company Britain were better off than Italy, France, Japan, Germany and the United States when wealth per capita was measured in dollars in 2007.

With the Recession taking its first bite of the British Economy in 2008, Britain fell in fourth place behind America, Germany and France but it’s predicted that during 2009 we will also be worse off than Italian households.

But with pound falling against the euro sharply there is worse still to come as families living in Britain are faced with the biggest economic contraction of any developed economy. The pound is now worth almost 1 euro, falling sharply in two months when you could get 1.3 Euros to your pound. The Sterling has also fallen hard against the dollar with the pound trading at less than $1.50, earlier this year you would get $2 for your £1.

Reports out last week from the Centre for Economics and Business Research, predict that the UK economy will shrink by 2.9 percent during 2009 making an altogether gloomy outlook for Britain’s economy.

Source: Telegraph