UK Economy Will Suffer 2016 Downturn

December 12, 2023


Image by: Images_of_money

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.


Related posts:

  1. UK economy has grown by only 0.2%
  2. Results of NIESR survey: UK economy is slowing
  3. 40% of households suffer financial slump
  4. Budget airline Ryanair profits despite downturn
  5. No pay rises for most workers
, , ,