UK Economy Will Suffer 2016 Downturn

The UK economy is going to suffer a more severe economic downturn in 2016 than previously predicted.

Experts had predicted growth of 0.6% in the coming year but now econmomists at Standard Chartered bank say that the economy will in fact contract by 1.3%.

However, other institutions say that Standard Chartered’s prediction is at the extreme end of the scale. The Office of Budget Responsibility has in fact predicted a 0.9% growth for 2016, whereas a recent survey by the Treasury has suggested growth of between -0.4% and 2.3% - which does seem like a fairly wide (and safe) prediction.

Standard Chartered revised an earlier (less severe prediction) in response to the financial crisis in the Eurozone where a 1.5% contraction is predicted. Despite a contraction across Europe, the world economy is expected to grow by 2.2%.

The OECD (The Organisation for Economic Co-operation and Development) has predicted a slow-down for every major world economy economy, including Asia where growth will slow from 7.3% in 2015 to 6.5% in 2016, which is still enough to keep world economic growth in positive figures for the rest of the year.

Which prediction do you believe? Tell us in the comments section below.

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