UK economy set to fall by 2.8% in 2009
The International Monetary Fund has today issued a report on a variety of Western governments, Western economies and how they are coping with the ongoing economic difficulties. Yet again the UK has been mentioned as the weakest economy in the developed world with forecasts indicating a 2.8% reduction in the UK economy this year. This is the largest one-year fall since 1946 and a rate which is faster than any other industrialised country in the world.
It will be interesting to see how the government react to this report amid claims that the US has been the main perpetrator of UK difficulties. However, even Gordon Brown may find it hard to compare the US economy against the UK economy and still blame the US for the more significant fall in the UK. Slowly but surely his years as Chancellor are beginning to unravel amid claims that excess spending has left the UK with no safety net and dire short-term prospects.
Recently Gordon Brown indicated that he had "not seen the recession coming" which is something of a U-turn compared to his recent strategy of blaming everybody else. Quite what he can do to turn around a situation remains to be seen but the UK economy and the UK population are in for a very difficult 2009.
Share this..
Related stories
Manufacturing firms are freezing wages
A survey by the Engineering Employers Federation has found that nearly 66% of UK manufacturers are freezing the wages of their employees. The report indicates that a small number have actually reduced the wages attributed to their employees, while some have increased wages slightly, but the vast majority have introduced pay freezes or increases just above 0%.
When you consider that...
Banking bailout cost £850 billion!
The National Audit Office has today revealed the full extent of the UK government's bailout operation with regards to the UK banking sector and money markets. A total of £850 billion has been used to bail out the sector and while the vast majority of this will be returned in due course there is a likelihood of a multibillion pound income shortfall when everything is tallied up at the end of the d...
Read MoreFinancial crime 'must be police priority'
Financial crime should be a police priority and the Home Office should change protocol to help the police to tackle the fraud which funds further crime in the UK, the chief executive of the British Bankers' Association (BBA) said.Angela Knight said that HM Revenue and Customs has also breached its duty of care in dealing with its customers, with regards to the recent loss of personal data in the c...
Read More41% increase in first-time buyer loans
12/09/2013 The number of mortgages advanced to first time buyers in July has increased by a huge 41% compared to a year ago and 5% in comparison to last June; reflecting recent reports of increased activity in the housing market. In total, there were over 25,000 loans advanced to first time buyers in July 2013 according to the Council of Mortgage Lenders (CML). However this is still 10,000 l...
Read MoreLloyds bank loses £54 million tax court case
The pressure on Lloyds bank finances continues with news that the company has lost a £54 million court case regarding a tax bill connected to its HBOS subsidiary some years ago. The issue goes back to 2003 and the company's exposure to failed US giant AIG which prompted the creation of an overseas holding company into which derivative instruments were liquidated after HBOS agreed to pay £2.2 mil...
Read More